do I apply today or wait a few more days

[Anonymous]

I am getting ready to apply for my mortgage for my new home, due to close end of June.  My middle score is currently 657 (EQ).  I have a derog that has been cleared up and should come off my report shortly.  Also have brought UTL from 18% to 7%, which should also be reported soon.

Other data points:  I am putting down 30% on my new home, and by debt / income ratios are fine.

I am really hoping that my score gets north of 660. 

Should I apply now or wait another week or so to see if my score goes up?

Also, if I do apply today and do not get approved, can I re-apply with same lender next week if my scores go up?

I am planning on using ING Direct, as their rates do not change according to your credit score.  They just use credit score as part of the yes / no criteria.

Thanks all.

[Anonymous]

I'd wait...unless it's your oldest account...then your score might decrease...is it falling off...or getting deleted...I recently had a recent collection deleted...and got about +45 points on all scores...

[ShanetheMortgageMan]

Since you already have the 650 FICO requirement that ING needs, and if the derogatory mark isn't recent, you should be OK to apply now or to apply later.  To my knowledge ING only does ARM mortgages though (3, 5 & 7 year fixed), are you comfortable with an ARM vs. longer a fixed rate?

If you are denied, ING will require you wait 30 days before they'll re-pull your credit scores and use the new credit.

[Anonymous]

Shane,

Where did you get the 650 FICO requirement for ING.  I didn't know that was a minimum requirement.  I have spoken to a few folks over at ING, and none of them has said anything about a 650 minimum.

And, yes, I am comfortable with an ARM.  I plan on being in the house 7 - 10 years, and ING offers a 1 time buy down that locks in for another 5 years (for $750).

WIth my FICO score of 657, the 5.25% is so darn attractive.  I will be at least 6.5% with other lenders.

[ShanetheMortgageMan]

650 is the minimum FICO for us to do loans with ING.  I've spoken to their retail side last year and they confirmed the same... although they do make exceptions if it's a few points off and there are compensating factors, which is why they don't come right out and say a 650 score is absolute.  Sounds like their ARM would be the right choice for you.