We are going for an FHA loan with 3% down and should be closing by Sept 30. My LO just ran our credit and came up with the mid scores of 599 and 611 for my hubby and me. The scores are very low and unjustified in my mind because of some mistakes and a merged report that I'm still trying to get straightened out. We've had no lates in the past two years, but our payment history looks crappy because we haven't used much credit in the past 5 years or so, and we each have a paid collection on our reports that I'm trying to GW right now. I know if I can those GW'd, our scores would go up, but not in time for a closing for sure. We gave in and each got small CCs a couple months ago to show good payment history, but it's still too soon to really make a difference on the reports.
What kind of rates do you think is reasonable to think we'll get with those scores? The LO says we will have no problem with the loan amount ($150k) because we have great income and the ratios look good. We've been pre-approved, but he's waiting on our documentation to give us the formal letter, but is confident about my figures that it'll be no problem. He's just thorough and wants the pay stubs,etc before putting it in writing.
But I forgot to ask what he thinks would be a good estimation of our interest rate. Any thoughts?
