Today after talking to a loan officer i got a Conditionaly Pre-Approval letter. My middle score was 616 so they said my loan would have to be FHA. Ive heard stories that Bank of America sometimes backs out after saying your approved. In the letter it says I'm okay to put in offers for houses now. Am I all set to go? Thank for any information
People have closed with lower scores but the problem with larger banks is they don't notice issues until your loan is in underwriting. Do you know if your area qualifies for USDA RD loan? Many lenders for fha typically require a 620 mid score. If time is on your side try to get your score up to bypass many issues that underwriters pick at. There won't be a yes or no answer to your question but with your mid you can expect your file to be scrutinized more than others with a 640 or above. Every situation is different but look around at local banks first. There was a thread a month or two back about BofA preapproving people then backing out in the middle of the process due to the file never being looked at initially. Remember conditional approvals pretty much hold little weight once everything goes to the underwriters. They look at everything under a microscope. My advice is do what you need to do in order to raise your score above a 640 but ideally a 660 or better makes the process much better.