Auto Approval & credit score question?

[Anonymous]

I was wondering today I recieved an automated approval for an FHA loan. My scores were TU-589, EX-674, EQ-603. Do they base the rates on your middle score and who decided what score that is? Also he told me the going rates were 6% today. The loan officer told me to wait until tomorrow to lock in the rates should be lower.

Should I ask for the lock rate on paper and is there anymore questions I should ask?

I want to thank everyone as well on fico. I have learned so much from all of you. A snapshot of my credit 1 month and 3 WEEKS AGO.

TU-546

EX-579

EQ-496

[ShanetheMortgageMan]

Rates are based on the lowest qualifying score from all borrowers, the qualifying score is the lower of two or the middle of three scores. When you lock your rate you should be given a lock in agreement that lays out the terms of the lock such as the interest rate, how long the rate is locked for (typically 30 days so you should ask before locking it in), and how many points (if any) the rate costs. A 600-619 score only has a slight adjustment to the interest rate, at most .125%. 6% seems a bit high at first glance, but would need to know your loan amount.

[Anonymous]

Shane the approval amount is $155,000 but this home is a foreclosure and I plan to offer $147,000. I checked rates today and noticed they were around 5.2% - 5.5%. When you see higher interest rates could it be the lender is making more money off the loan by adding points to the interest?

[ShanetheMortgageMan]

It could be, but not all lenders get the same rates.  I am looking at two different lenders rate sheets and at 5.5% one lender is paying a commission where at another lender 5.625% isn't even paying a commission.  So it could just be that their rates aren't competitive no matter what your score is.

[Anonymous]

Shane not to overload you. I was getting concerned. I went by the loan officer's office to get my approval letter and he said he needed all my documents to give me that.

Where my concern lies is I noticed he has in the system that monthly I make $4386. I'm not sure where he got the number but I ask and he said that he calculated my money from doing hair in with that. Do you think I would still qualify for a loan amount of $140,000 on a $3200 monthly income and $1472 going out monthly?

[ShanetheMortgageMan]

On $3,200/mo no... but on $4,386/mo it's possible.  How long have you been doing hair, and do you claim it as income on your tax returns?