Can I demand to have my credit pulled again knowing it has improved?

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We are locked at 4.5% and considering float down options. The offer on the table now is to pay ¾ point, float to the current rate +.125%, and get a ¾ point credit at closing. The additional .125% is added to rate due to my credit score. The score was pulled in April and was just below 740 (736 or 738). My husband and I both had scores between 760 and 810 in Dec. But I forgot to pay for one or two months during the busy holiday season for a department credit card and my score fell. Fast forward 6 months later and I asked could we pull my score again to see if the score has changed enough to get over the 740 hump. My lender said “..we cannot just pull a new one unless it’s out of date or if there were items reported in error —– remember we looked into that ,the late reporting was real thus it was not correctable.” I understand the lender can’t just pull a report without a reason but isn’t it different if I request (and pay for) an additional report? Or is this left up to the lender’s discretion? We are looking at a 6/23 close and have until 6/13 to float. Also the application is not with the underwriter yet, we were told it would be sent next week towards the end of the week.

3 months ago PH said:
 

Let me start out my comment that I am in no way a mortgage professional, but I do read a lot about mortgages! In my understanding there are times when a Broker will opt for a rapid rescore, if the scores have need to be higher and the applicants have been trying to raise them. Seems to me that if it works to benefit everyone that way, then there should be a rescore to help just the customer too. I am also not sure about him saying, you cannot pull a new one unless it’s out of date? So isn’t it out of date after your scores change every month when the credit bureaus repost their new scores? Just wondering how that would work? Personally I would pull my own scores for a soft pull and see if they had changed and if so then I would ask for them to be updated. Maybe reminding them too that with the scores you do have that there are many other available options out there for you if they don’t! Good Luck!

3 months ago Ted Rood said:
 

@PH Rapid rescore is an entirely different procedure than pulling a new report. Consumers cannot “pull their own scores with a soft report” as the scoring models used by the credit bureaus are different for consumers and lenders. Credit reports are considered valid for 120 from the date they are pulled, which is a pretty lengthy time frame. If credit improves during that time, lenders have two options: pull a new report (which replaces the prior one) or do a rapid rescore, which is considerably more expensive and updates only certain accounts, versus the entire report.

3 months ago PH said:
 

@Ted Rood Wow thanks for the information Ted! I thought our consumer soft pulls were basically what the lenders had too. I wonder which is the better score? Also, the 120 day report time frame would probably outlast the lock dates. Thanks you helped me with some of my own refinancing questions!

3 months ago Ted Rood said:
 

@PH Glad to help. Yes, reports are good for longer periods that virtually all rate locks. In my experience, consumer pulled scores are typically higher than lender pulled. Glad to help with any refinance or purchase questions, I write loans in all states.


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You may be looking at an individual lender’s policy. I’ve been writing loans for 14 years and have never worked anywhere that wouldn’t allow a new pull in the circumstances you’ve described. It can be costly for lenders to pull multiple reports on a single file, but the cost is typically passed along to the client anyway, so not quite sure on their motivation. I have a client in a very similar situation now, scores between 710 and 720, and if we go to 720 as hoped, the pricing will be better on both his actual loan and the monthly PMI. We’ll likely pull a new report. Short answer to your question, there are no Fannie or Freddie policies that forbid lenders running a new report (even if the old one is still valid) to see if their clients' scores have improved. It’s always important to remember, however, that if a new report is pulled, it HAS to be used, even if the scores have dropped! Hope that helps, and your closing goes smoothly, Ted

Answered 3 months ago
Ted Rood
1237 6

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Answered about 1 month ago
Joe Duane
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