My scores are as follows as of today
722EQ 733TU 723EX
my CC utilization 30% and have paid 10% of that making it 20% as of yesterday, but would probably not reflect until the month end.
we're first time home buyers. My wife has a credit score of 811 on her FICO8.
We found this house that fits our needs and we want to get a preapproval so we can move forward with putting in an offer.
should i wait a couple of weeks until month end to get the preapproval for the best rates? or should we go ahead and do the hard hit on our credit with my scores currently as we do not want to lose out. From what i read. it's best to go in with at least 740 to get the best rates.
We are thinking of a conventional loan with about 5% down for the time on a 360k home. We are able to make payments on a 15yr morgage with no issues.
we have stable job history myself 10yr and wife 5yrs. Income to debt is very low. mostly wifes student loans of 20k and combined cc debt is 15k with auto loan 17k. no missed payments obviously and combined income >200k.
Any advise/tips on this would be appreciated.
First of all, congratulations on your first home search! I honestly don't think it will make much of a difference (maybe 0.125% at the most, if anything). They use your middle score, currently 723. With that score, and your wife's great score, I think you will get the best rates.
I would suggest talking to your lender and tell them what your scores are. If they think your scores will pop enough to make a difference, they can do what is called a rapid rescore. Basically, the confirm the lower credit card balances with the card companies and can submit those before they actually post. This gives you the benefit of the lower balances early.
I hope that helps a little. Good luck with the search!
Definitely go to the open house if it looks like a great fit. With your scores, financing will not be a problem, so making an offer would not be a bad idea. On a $360k house with 5% down for 15 years, even if you're interest rate is 0.125% higher, the monthly payment is only $20 higher. But like I said, the lender can do a rapid rescore which would get you the benefit of those lower balances now.