Fkn credit score tanked with home loan

I spent years after a shity divorce rebuilding my credit. I wasn't where I wanted to be but it was going up. I was up to 720-750ish and I took out a construction loan to build a house, my place burned up just before Christmas. As soon as the loan hit my credit report my rating dropped around 100 points. I just don't get it.....

Well now you have a huge liability, so the risk of loaning to you is greater. That's how a credit score is supposed to work. As you pay off this loan, your credit score will go back up and actually get even better since you will prove that you are credit worthy by making your payments on time.

Sandy Pantz - Well now you have a huge liability, so the risk of loaning to you is greater. That's how a credit score is supposed to work. As you pay off this loan, your credit score will go back up and actually get even better since you will prove that you are credit worthy by making your payments on time.

GenErick -
Sandy Pantz - Well now you have a huge liability, so the risk of loaning to you is greater. That's how a credit score is supposed to work. As you pay off this loan, your credit score will go back up and actually get even better since you will prove that you are credit worthy by making your payments on time.

I have a "construction loan". After the home is complete I will be converting to a VA home loan. My credit will screw up my conventional loan now. Fuck me.

I just bought a house. I havent seen any negative impact from it yet. But we have a car and several credit cards we keep  current, so it might not hit us. We both brought ours from under 500(we didnt really have anything on our report) to over 700 in a little less than 2 years. We really dont care about out score, just wanted it up to buy said house.

wormiwalkinstik - 
GenErick -
Sandy Pantz - Well now you have a huge liability, so the risk of loaning to you is greater. That's how a credit score is supposed to work. As you pay off this loan, your credit score will go back up and actually get even better since you will prove that you are credit worthy by making your payments on time.

I have a "construction loan". After the home is complete I will be converting to a VA home loan. My credit will screw up my conventional loan now. Fuck me.

No it won't, If you build a house and get it appraised for more than you owe, your credit score will increase significantly

wormiwalkinstik - 
GenErick -
Sandy Pantz - Well now you have a huge liability, so the risk of loaning to you is greater. That's how a credit score is supposed to work. As you pay off this loan, your credit score will go back up and actually get even better since you will prove that you are credit worthy by making your payments on time.

I have a "construction loan". After the home is complete I will be converting to a VA home loan. My credit will screw up my conventional loan now. Fuck me.

A loan is a loan. You paid for something on credit. You're now in 6 figure debt and that's a huge liability. Sorry man, but the score is reflecting what it's designed to reflect.

I should also add that a credit score is not a be all end all. The lender looks at your actual credit history, not just the score. So seeing you want to convert one loan to another loan is going to be different than having one loan and trying to take on an additional loan even with the exact same score.

Was there something you need your credit to be high for right now or are you enamored with the number?

KeezyDoesIt - Was there something you need your credit to be high for right now or are you enamored with the number?
I just want to be able to take advantage of my VA loan. They require a 650, I'm now under that. I have one cc and keep it below 30% of limit. No late payments for years.

I've been financing residential, construction and industrial mortgages since 2005. Your situation doesn't really make sense. 

 

First of all anything over 700 is good credit. Anything above 750 is great credit. Anytime you borrow more money your score and / ability to borrow will go down do to your borrowing ratios but your score should never have dropped 100 points because of the construction loan. You were granted that loan because you had good credit. Construction loans are especially tricky because it's basically a bare land deal / raw land, and lenders are hesitant on them unless the borrower is strong etc. I would pull your credit and pay for it and have a financial planner or mortgage professional comb thru it. You might have a collection on there or your ex wife could've had a credit card etc in your name and now isn't paying it. 

 

 

 

 

 

Curious. I'll come back and check in. I see it everyday. Both scenarios. 

That's to keep you from selling it and being able to move soon (like within 5 years). Unless in a position you can take a loss.
Mine did same thing and would like to move within a year but not really able to

I wouldnt trip about it. By the time you go to convert all that shit the score will be back up. Plus with all the lazy ass people in the world that don't want to work for anything the slightest show of responsibilty makes any creditor happy

For example my score was a 700. That affected my interest rate when buying my house. What truely had the banks on board was the fact Ive held the same job for 7 years

wormiwalkinstik - 
KeezyDoesIt - Was there something you need your credit to be high for right now or are you enamored with the number?
I just want to be able to take advantage of my VA loan. They require a 650, I'm now under that. I have one cc and keep it below 30% of limit. No late payments for years.

Keeping it under 10 percent will help your score. Not sure by how much, but it will for sure help.

ABCTT_Fister -

For example my score was a 700. That affected my interest rate when buying my house. What truely had the banks on board was the fact Ive held the same job for 7 years

Is it because of same job or continuous employment? Just curious if continuous employment is treated same as if you were w8th the same company

Letsputasmileonthatface -

I've been financing residential, construction and industrial mortgages since 2005. Your situation doesn't really make sense. 

 

First of all anything over 700 is good credit. Anything above 750 is great credit. Anytime you borrow more money your score and / ability to borrow will go down do to your borrowing ratios but your score should never have dropped 100 points because of the construction loan. You were granted that loan because you had good credit. Construction loans are especially tricky because it's basically a bare land deal / raw land, and lenders are hesitant on them unless the borrower is strong etc. I would pull your credit and pay for it and have a financial planner or mortgage professional comb thru it. You might have a collection on there or your ex wife could've had a credit card etc in your name and now isn't paying it. 

 

 

 

 

 

Curious. I'll come back and check in. I see it everyday. Both scenarios. 

I have one in collection. It was a dvd that my ex rented on my account and apparently never returned. It's measly 40 or 50 bucks. They won't remove it from my credit if I pay it so I was advised to not pay it because it will remain on my credit report. This was like 5 years ago.

wormiwalkinstik -
Letsputasmileonthatface -

I've been financing residential, construction and industrial mortgages since 2005. Your situation doesn't really make sense. 

 

First of all anything over 700 is good credit. Anything above 750 is great credit. Anytime you borrow more money your score and / ability to borrow will go down do to your borrowing ratios but your score should never have dropped 100 points because of the construction loan. You were granted that loan because you had good credit. Construction loans are especially tricky because it's basically a bare land deal / raw land, and lenders are hesitant on them unless the borrower is strong etc. I would pull your credit and pay for it and have a financial planner or mortgage professional comb thru it. You might have a collection on there or your ex wife could've had a credit card etc in your name and now isn't paying it. 

 

 

 

 

 

Curious. I'll come back and check in. I see it everyday. Both scenarios. 

I have one in collection. It was a dvd that my ex rented on my account and apparently never returned. It's measly 40 or 50 bucks. They won't remove it from my credit if I pay it so I was advised to not pay it because it will remain on my credit report. This was like 5 years ago.

That's no joke man. Cell phones, blockbuster and unpaid parking tickets can ruin credit. You sir are correct. 

ABCTT_Fister -

For example my score was a 700. That affected my interest rate when buying my house. What truely had the banks on board was the fact Ive held the same job for 7 years

I've been at same job nearly 15 years. I may be over reacting to this but it's been a rough time over the past several months. To this day I could put all of my possessions in my car. I don't have anything really and I don't care. I just want to go to my new home on my land and press forward.

Festus -
ABCTT_Fister -

For example my score was a 700. That affected my interest rate when buying my house. What truely had the banks on board was the fact Ive held the same job for 7 years

Is it because of same job or continuous employment? Just curious if continuous employment is treated same as if you were w8th the same company
Continuous employment to be more defined. It's not a good look though to have a bunch of jobs months at a time.

Debt to income ratio is huge as well. My wife wants to die rich I think. She squirrels money away and I just work. She handles all that stuff because she's an accountant. One huge factor for us/me is after the home loan our debt to income was only 23% used up.

During the preapproval process the loan officer told me that if we wanted new cars or needed to do anything expensive to do it now before the loan.