cancel
Showing results for 
Search instead for 
Did you mean: 

Question of how scores impact the mortgage application

tag
rckstrscott
Valued Contributor

Question of how scores impact the mortgage application

Thanks for all the great information this forum provide..

 

I just have a pretty simple, broad and general question. I am sure there are plenty of other factors involved.. just a simple ballpark is fine..

 

My FICO scores are going up quickly enough due to my paying down my high credit card utiliaztion.. right now I'm right around 620 but I anticipate being around 650 by the time we start shopping for a house (later this year)

 

My fiance (soon to be wife) has outstanding credit, 740+ scores..

 

My income is 60K plus, but hers is only 12k. She has a varying degree of credit.. revolving, car loan, no student loans. Her DTI is not too bad all things considered/

 

Since her score is high, but her income is low, is she basically irrelevant when it comes to our application?

 

Please ignore my ignorance, because I have never shopped from homes/mortgages before and I am just trying to get a simple understanding.

 

thanks!

scott

Starting FICO Score: October 2010: TU 498 | EQ: 502
Current FICO Scores:: May 2022: TU: 784 | EQ: 770 | EX: 790
Message 1 of 4
3 REPLIES 3
ShanetheMortgageMan
Super Contributor

Re: Question of how scores impact the mortgage application

Lowest score of all loan applicants is used when determining loan program eligiblity, interest rates, etc.

 

I assume that your income will be needed to qualify, unless you were looking for homes in the $30-40k range.  If so, and your score will be a 650, then FHA financing may be your best bet if you have a low down payment (10% or less).  With FHA financing, the difference in rates between a 650 score and a 720 score would likely be .125% at most... may even be able to get the same rate as a 720 but just have to pay .25% point in additional fees.

 

How much were you planning on putting down?

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 2 of 4
rckstrscott
Valued Contributor

Re: Question of how scores impact the mortgage application


@ShanetheMortgageMan wrote:

Lowest score of all loan applicants is used when determining loan program eligiblity, interest rates, etc.

 

I assume that your income will be needed to qualify, unless you were looking for homes in the $30-40k range.  If so, and your score will be a 650, then FHA financing may be your best bet if you have a low down payment (10% or less).  With FHA financing, the difference in rates between a 650 score and a 720 score would likely be .125% at most... may even be able to get the same rate as a 720 but just have to pay .25% point in additional fees.

 

How much were you planning on putting down?


I appreciate all the information you provide this forum. It is amazing how much I have learned in a week Smiley Happy

 

I am in the Chicago area; and we have been mulling around the idea of around 160-200k home. Right now, we pay $1450 for our 2 bedroom apartment, and make those payments with more than enough to spare each month after all bills are accounted for.

 

We should have anywhere between 10k and 25k to put down, depending on how much money family is helping out with. On our own, I'd say we could have around 10-12k. I could probably push it if needed.

 

I had a lot of credit problems in the past, but never a mortgage, no bankruptacy, ect. and I have had a clean 2 years in regards to ontime payments and no new collections accounts.  I had a lot of negatives on my reports (19 items in collections, all older than 2008) but I have reduced the number showing on my report to 9, and of those 9, 7 are paid in full and 2 I am working on getting removed because they do not belong to me and the CA hasn't validated. So my report won't be the cleanest but its starting to come around. I also hope by the time I am ready to pull the trigger, I will have as many of those 9 baddies removed.

 

I have pretty much already assumed with my credit FHA will be the only way I'd get approved, due to my issues in the past, but from just the simple information I am provide, I am looking ok for an FHA once I finish off the collections account?

 

thanks again!

-scott

 

 

Starting FICO Score: October 2010: TU 498 | EQ: 502
Current FICO Scores:: May 2022: TU: 784 | EQ: 770 | EX: 790
Message 3 of 4
ShanetheMortgageMan
Super Contributor

Re: Question of how scores impact the mortgage application

You are welcome.  Assuming your other debt payments aren't more than $1k/mo, then a $200k sales price with 5% down & FHA financing should be very attainable for you guys.

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 4 of 4
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.