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Mortgage

fast5frog
Member

Mortgage

I am currently waiting for my scores to increase for a better mortgage rate. My question is what is a decent score to start getting pre-approved? ( my scores have just made it to 618-622, I have been working hard to get back on track and I know I have a bit to go but... )Also, is there anyway to get an idea of what I would need down, monthly payment, rates..etc. without having a bunch of brokers pull my score and have my score drop again from the inquiries? Just to see where I stand? Thank you
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3 REPLIES 3
HouseHunter
Frequent Contributor

Re: Mortgage

I recently spoke with a loan officer at the bank I've been with for years.  My lowest score is 635 and that's because the only tradeline I have is not reporting payment or balance history to this particular CRA at all which, I've been told by the creditor, is being resolved and should be showing within 30 days. 
 
My highest score is 685.  The loan officer said this is a very good score when it comes to getting a loan.  He said that, granted, your absolute best interest rate will come with ANY score over 720+.  At my bank anyway, it doesn't matter if you're 720 or 820, you get the same top rate according to him.  Unfortunately, he advised me that the CRA with my lowest score is the one that they use to approve their loans.  :-(      Wouldn't you know it!
 
He told me that they approve loans in the upper 500's - depending on actual credit history, however, at a much higher rate.  He said that with my scores, I wouldn't necessarily need any money down for a home and since I'm a first time homebuyer, I qualify for a variety of "down payment" programs anyway.  He also said that if I have the payments automatically withdrawn from my checking account with them, then they knock points off of the interest rate.  Nice bonus for going with your old faithful bank.
 
If you have a checking or savings account, just call and talk with a loan officer at your bank.  Ask them as many questions as you can think of.  They're more than willing to offer you advice - at least my bank is, especially if they think they can talk you into taking out a loan with them.  
 
Message 2 of 4
HouseHunter
Frequent Contributor

Re: Mortgage

I said:   He told me that they approve loans in the upper 500's
 
Correction:  They approve loans to those with SCORES in the upper 500's
Message 3 of 4
boheme
New Contributor

Re: Mortgage

An actual pre-approval will require a verification of your FICO. That being said, a broker should be able and willing to give you a quote (Interest rate, payment,...) as long as you understand that the quote will only be as good as the information that you provide and that ultimately they will still have to repull your credit. For an accurate quote you will need:
  • Estimated FICO (Generally middle score)
  • Gross Monthly Income
  • Amount of Liquid Assets (Bank Accounts, 401K...)

Your Income and assets will be used to determine the max loan amount and also the documentation type for your situation. Less documentation equals higher payments. You will also want to have an idea of how much you can utilize for the down payment. With the tightening guidelines in the mortgage industry any amount extra can be a huge help.

Message 4 of 4
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