Investor · Lithonia, GA · Member since 2012 · 231 posts · 43 votes
Hi all,
I currently feel stuck in my investing journey. I have 6 houses and I am trying to get my 7th, but my credit score is 711, just shy of the 720 needed to get approved for a conventional loan.
My scores on Credit Karma and the Bank of America and Wells Fargo app is much higher than the 720 but for some reason when my credit is pulled by the mortgage broker it continues to be lower than the 720 needed.
I have been on the sideline for 4 months now and I am starting to get impatient because I have cash from my other properties that I want to deploy. Does anyone have any advice on possible next steps I could try? Or any stories on what you would do in my situation?
Investor · Surprise, AZ · Member since 2018 · 156 posts · 110 votes
7y
Hello Chudi,
Credit Karma pulls your "Vantage" score which is different from the typical "FICO" score that most lenders use. In addition, there are different versions of the FICO score used for mortgage, credit cards and auto.
First I would find out what scoring system your lender/s are using and find out what criteria you need to get your score to the 720.
Are your credit cards utilized at high ratio? You might try paying them down ideally below 30% (10% preferably). The following month your score should increase.
Also, many times lenders pull all three credit agencies and use the lowest of the three. Find out which is lagging. Could be missing some information?
Investor · Madison, WI · Member since 2019 · 15 posts · 16 votes
7y
Have you thought about using private money instead of the banks?? Are the 6 properties you mentioned flips or rentals? Are you a member of a local REIA?