Should I take FICO scores to LO?

[Anonymous]

We have recent FICO scores (9/1).  Should I take those with us to discuss options with the LO (first meeting), or should I just let them run everything for pre-approval?

Thanks for any advice. 

[rockymtngrl]

If you are just talking with a lender wanting to know your options, you can just tell them your scores and see what they have to offer you. But for anything definite and/or to get a preapproval they will have to pull themselves.

[Anonymous]

That depends on your current situation. Are your scores close to the 620 minimum requirement that a lender inquiry on your report might drop your score below the minimum? Do you have high debt/low income, lack downpayment/reserves/closing costs, late payments/BK/Foreclosure, or anything else in the last couple years that may be obvious reasons for denial? Obviously wouldn't make sense to have a lender pull your scores if you have those types of things in your recent history.

But if you're in pretty good shape, i'd just go and let them pull your scores... assuming you're ready to buy in the next month or two.

[Anonymous]

Scores are 690-730.

Debt to income is good.

I don't have any late payments since 2005. 

I don't know how much I'm supposed to have for downpayment/reserves/closing costs.  I have to submit my bank records for the last 60 days, but I'm not sure what they want to see.  How much cash on hand, etc.  I'm looking to go FHA.  

We hope to buy in the next month or two, but I guess it depends on what is out there.  I've also read that some people think the 8K tax credit is going to increase next year, so maybe we should wait.  So complicated.

What do you think?

Message Edited by CrashDavis on 09-10-2009 07:19 PM

[ShanetheMortgageMan]

Your score should be fine for FHA, credit check would be needed eventually but not for you to discuss things with the LO.  FHA is just looking for a 3.5% down payment, if your debt to income ratio is OK then you shouldn't need any additional funds, unless you are also going to be paying your own closing costs too.

[Anonymous]

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@Anonymous wrote:

We hope to buy in the next month or two, but I guess it depends on what is out there.  I've also read that some people think the 8K tax credit is going to increase next year, so maybe we should wait.  So complicated.

Message Edited by CrashDavis on 09-10-2009 07:19 PM

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If you want to buy in the next month or two, now's the time to meet with someone and let them pull your credit.  I personally wouldn't bet on the credit being increased but that's me.  Extended, maybe.. 

[Anonymous]

One of the questions I have is...what if the LO does the pull and we get the pre-approval, but then we can't find a house we want to buy for an extended period of time.  What then?  Do they renew the pre-approval?  Will that require an additional hard pull?

[ShanetheMortgageMan]

Credit reports are good for a certain amount of time, the current policy that is followed by most lenders is that if you are buying an existing home the credit report is good for 120 days, if it's new construction then it's good for 180 days.  Soon lenders will trim that down to 90 days for existing, and 120 days for new construction.  Also, some (not most) lenders will do a final credit report pull shortly before the closing regardless of how old the original credit report was, unless you absolutely know that nothing on your credit will change for the worse, I'd recommend avoiding lenders like that or else you might find you approved at first then declined right before everyone is expecting you to close.  Those lenders aren't bad lenders, they just have a bad policy.

[rockymtngrl]

Also just to add to the conversation- if the tax credit is increased, the way its written now it would be a non-refundable credit. Big difference. Although personally I don't think it will be increased from what I've read.