Forgotten Your Password?

Need to Register?

Question Icon

If my credit score improves during escrow could i get better rate/fees?

by lindzzz362 from Winston, Oregon. May 24th 2017 Reply


Larry Gray (lgray_312_247)
#563 ranked lender in California - 1,127 contributions

If your credit is pulled again and your credit is better, than yes you are entitled to a better rate and less cost if so qualified. You need to inform your loan officer what you accomplished that is causing better credit scores. I am assuming you have a service you pay for that allows you to check your credit periodically so you can pull it without recording as a "hard credit pull." You thus would be seeing that whatever you paid off is now showing as such, or whatever corrections you requested be made is now showing. Chances are the loan officer is not to re-pull credit but the Underwriter can and should be informed. Typically when I do a rapid rescore for a borrower it is because a correction was made, which then allows us to also pay down any credit cards to aid our cause. This process typically takes about 5 days and we can request the new scores.as a result.

May 24th 2017
1
0
William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,055 contributions

The short answer is no.. once your file has been sent to the underwriter, what ever credit score you have is what they go with.. if your score improves, there is not concessions unless the lender pulls the file and goes to a different investor, in which case he can swap out the credit reports. But also understand that most lenders will re-pull your credit before funding a loan to be sure you didn't take on any new credit obligations.. and if your score drops on the new report, they will not cancel your file or go back and try to raise the rate.. If you have opened escrow, but the file has not been submitted to the underwriter, then yes.. you could capitalize on the improved credit score.. Understand that depending on the loan program you are applying for, there might not be any real difference.. FHA for example.. 650 Credit score borrowers will typically pay close to the same rate as a 750 borrower. Also understand that rate changes comes about every 20 points up or down,, 620,640,660,680, etc... if you are at 661 and your score improves to 679, the rate would be the same. I'm a preferred Lender with Arizona and California being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

May 24th 2017
1
0
Subscribe to our news feed.