Re: How to look the best for mortgage approval by April?
01-24-2013 06:22 PM
I just signed up today, bc i was curious about my FICO for mortgage purposes. My husband and I are looking to buy a house and get approved around April.
So here is the conundrum...
my Trans Union and Equifax FICO's from this site are 709 each. My Credit Sesame score, which i did before reading that it's not usually accurate is 724. My Husbands Credit Sesame Score is 742, but we haven't checked his FICO's. I am the bigger earner, if that matters.
The only reason why my score is 709 is high credit card utilization/balances. My current utilization is 38%. From now until march, i can get it down to 25-30%, and bring two accounts to zero, without touching any down payment money. I could go futher and pay more, but reduce my down payment.
For mortgage purposes, is it better to keep as much money as possible for downpayment or pay off more debt but put less money down? I would be getting a conventional mortgage.
Looking at the FICO ranges on this website and correlating interest rates, i am the 2nd from the top category, but the top category starts at 760. So, to me, getting to 760 in 3 months sounds impossible, so I assume it would be better to just pay what i can and not touch the down payment money. Please advise!
If you are both going to be on the loan then you need to know your husbands FICO score also. They will use the lower of the two middle scores for approval.
If you shop Lenders you should be able to still find a few Lenders with a 720 for their top tier rate, and many others accepting a 740 as their top tier rate. If you cant find a Lender directly on your own, then find a Boker who deals with multiple Lenders.
If both of your scores are in the 700's for your middle score, the rate will only matter if you are going Conventional.
As far as what would be better, paying down UTIL or putting into down payment? My opininion is it all depends. How much of a down payment were you considering to pay? 30%, 20%, 10%, 5%, 3.5%? Also depends on the type of loan you are considering, the price of the home, and your income.
May all your dreams and wishes become a reality!