Low Fico, but have good down payment- do I qualify?

[Anonymous]

Hello all,

I am (or will be) a first-time home buyer. Looking to purchase a condo here in Atlanta and need some help/guidance. 

I'm looking around the $200k range, actually, i don't want to go over $200k and that's a huge feat in itsetf, in this city. But anyway, I've got about a 635 FICO and have two accounts in collections which are about $1,200 total and i think 5 years old. I've got a decent (I think) income of around $74-82k, depending on bonus and about $100k for a down payment ( I had some help from family-but that's neither here nor there haha). Out of the down payment money I think I will pay my car off which is around 12k left and just not have to worry about that. Is thata good plan?

I would hope i can be approved for a loan but what might the terms be? Around 5% interest for a 30-yr fixed? I hear Quicken Loans is a good lender, who else might you suggest? I still need to do a lot of research but I figured I would start here- you guys rock!

Thanks in advance

[wit2bees]

Hi!

A lender would look at all three of your FICO scores when considering your preapproval.   You should have no problem getting a preapproval with the large down payment.  You could actually get an FHA loan with significantly less down.  The large down payment would help make your loan much favorable and with 20% down (40,000) plus cost you may be able to get a conventional loan and avoid PMI.  

Quicken would be good, check with your credit union as well.   

[NC_Mtg_Loaner]

Talk with a couple mortgage loan originators in order to find one you feel you can trust or someone you think you'll be comfortable working with as you plan for this purchase now.   Allow this person to take an application for pre-approval so they can analyze your current situation.   

For someone who has that much income and money saved for a down payment, it seems to me like something is wrong in your credit profile and there aren't too many situations, circumstances and reported data within your report that can't be "corrected" in a couple months if you just knew what to do.   

Therefore, you'll want to allow said trusted Loan Originator the opportunity to guide you to the "Promised Land". 

[egghead88]

If your down payment funds are properly sourced, you wont have any issues getting a conventional loan.

I do have to agree that it appears that something is off in your credit profile. Depending on your timetable, you should get with a loan officer to determine how to improve your Fico to lower your rate. Your saving could be significant over a 30 year loan.


Good luck!

[JVille]

If the 2 Collections combined are only $1200 and you legitimately owe the money why don’t you just make your life easier and pay the debt.... this will fix the Fico Scores.