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New To Mortgage - Quick Question

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Delta22
Member

New To Mortgage - Quick Question

Hello - 

 

What score model should I be looking at for my 3B as to what lenders would be looking at?  

Also, does lenders look at what's in your savings?  I am looking to pay down a little on some credit cards (Nothing to crazy) and wondering if I should wait till after the mortgage lender approves us for a loan, then pay off?  

My credit scores are showing over 730 for all 3 using the MyFico 3B

 

6 REPLIES 6
StartingOver10
Moderator Emerita

Re: New To Mortgage - Quick Question

Look at the scores that are labeled for morgage lending.

 

Read this link for detaits: http://ficoforums.myfico.com/t5/Mortgage-Loans/FICO-scores-used-for-mortgage-and-where-to-obtain-the...

Message 2 of 7
Delta22
Member

Re: New To Mortgage - Quick Question

Thank you, I just found that.  I'm new to the 3B site, and figuring that out.  

Now as to paying down a few cards nothing to crazy, or to keep my saved money in my savings alone till after we get approved for a new mortgage.... 

Basically I am unsure if the lender would look at my savings, if I touch my savings, then the money won't be showing as I would be using it to pay down a few cards a little.  

Unsure if this is making since, it's been a long long day already 

Message 3 of 7
StartingOver10
Moderator Emerita

Re: New To Mortgage - Quick Question

The lender looks at your bank accounts, including savings.  I am assuming you have additional funds over and above the amount you need for down payment, closing costs, and pre-paids (and reserves if required).  

Message 4 of 7
Anonymous
Not applicable

Re: New To Mortgage - Quick Question


@StartingOver10 wrote:

The lender looks at your bank accounts, including savings.  I am assuming you have additional funds over and above the amount you need for down payment, closing costs, and pre-paids (and reserves if required).  


Is there a link that tells us what percentage we need to have for closing, pre-paids and what they are, reserves, escrows, etc. thanks. trying to prepare as well.

Message 5 of 7
StartingOver10
Moderator Emerita

Re: New To Mortgage - Quick Question


@Anonymous wrote:

@StartingOver10 wrote:

The lender looks at your bank accounts, including savings.  I am assuming you have additional funds over and above the amount you need for down payment, closing costs, and pre-paids (and reserves if required).  


Is there a link that tells us what percentage we need to have for closing, pre-paids and what they are, reserves, escrows, etc. thanks. trying to prepare as well.


The lender will give you a breakdown of all the cash you need for closing including downpayment, pre-paids, reserves (if required) and closing costs. 

 

For an extremely rough estimate you can use a "rule of thumb" of 4% of the mortgage amount for closing + your down payment amount. For FHA down payment is 3.5% for  conventional it is whatever percentage you choose to put down (5%, 10%, 20% etc)  

Naturally the LO will give you a much better breakdown using actual taxes and insurance and other costs for you.  It costs nothing for you to get the estimate and that is the best way to know where you stand with your funds. 

Message 6 of 7
Anonymous
Not applicable

Re: New To Mortgage - Quick Question


@StartingOver10 wrote:

@Anonymous wrote:

@StartingOver10 wrote:

The lender looks at your bank accounts, including savings.  I am assuming you have additional funds over and above the amount you need for down payment, closing costs, and pre-paids (and reserves if required).  


Is there a link that tells us what percentage we need to have for closing, pre-paids and what they are, reserves, escrows, etc. thanks. trying to prepare as well.


The lender will give you a breakdown of all the cash you need for closing including downpayment, pre-paids, reserves (if required) and closing costs. 

 

For an extremely rough estimate you can use a "rule of thumb" of 4% of the mortgage amount for closing + your down payment amount. For FHA down payment is 3.5% for  conventional it is whatever percentage you choose to put down (5%, 10%, 20% etc)  

Naturally the LO will give you a much better breakdown using actual taxes and insurance and other costs for you.  It costs nothing for you to get the estimate and that is the best way to know where you stand with your funds. 


thanks for the response.

Message 7 of 7
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