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I am new to the forum, and like most dealt with a couple of years of adversity. Working to get everything on pace to make a condo purchase in the next three months.
I pulled my 3B scorces from MyFico (how valid are their reports to what a lender will see?)
Fico2-627
Fico4-543
Fico5-611
Is now the right time (if the myfico score are accurate) to apply so that i can lock in the process on a place I have found? Or should I wait another month or two to increase?
The scores you get on the 3B that say "The following versions are commonly used in mortgage lending
decisions - FICO Score Score 5, 4 & 2" will be identical to what a mortgage lender pulls. There typically is a pretty significant break on interest rates once your middle score reaches a 620, so you are just 9 points shy of that. I'd work on bringing it up to that level before your credit is checked for the mortgage.
Thank you for the information.
Yes that is where I pulled those scores from. Its interesting the way the three vary on how the weight the older issues (TU wieghted an old CC late payment from 2014).
I will work for another 30 days or so an see what I can get increased on the mortgage scores. Only issue is I am seeing some pretty good properties popping up for sale in the past week!!
You can ask your loan officer if they can pre-approve you based on current scores, but would also be able to re-pull credit after your score gets up to a 620 so you can take advantage of better rates. You take the risk of the score not getting to a 620 though, so you'd have to be OK with the less attractive mortgage terms if you are unable to wait to make an offer.
Essentially you'd pay a lot more for the home if scores are below 620 (that's also considering if you stay in that mortgage for quite sometime)
Timing is everything when considering buying a home. I believe we have an additional rate drop coming this month and I am see price reductions across the USA. So in my humble oppinion, this is an awesome time to start the process of getting into a home. Here is what tell the folks that call me. What is your time frame? This makes a difference in what I recommend.
If you want to be in a house in the next 90 days or sooner, here's the strategy. Let's pull your credit now. I'll run it through the Credit Analyzer and tell you moving forward what to need to do in order of achieving a higher score thus getting a little better rate. I can issue a pre-approval based on their current credit score, income to debt ratio, and available funds to close. I tell them, this is your baseline. Your worst case scenario.
I explain moving forward, if you follow the recommendations of the Credit Analyzer and if your scores go up anytime during the process and we can repull it and if in deed they go up as forecasted then we can float down your rate. At least they know best and worst case. I hope this helps.
Best wishes!
@Anonymous wrote:I am new to the forum, and like most dealt with a couple of years of adversity. Working to get everything on pace to make a condo purchase in the next three months.
I pulled my 3B scorces from MyFico (how valid are their reports to what a lender will see?)
Fico2-627
Fico4-543
Fico5-611
Is now the right time (if the myfico score are accurate) to apply so that i can lock in the process on a place I have found? Or should I wait another month or two to increase?
Hi and welcome to MyFICO
If you provide us with your DPs, we can offer some suggestions on how to increase your scores and things needed in preparation for home purchase. So we need:
*name of CCs, min pymt, CL, and outstanding balance
*auto payment, if any
*any other loan payments, if any
*any student loans? If yes, monthly payment
*any lates in last 12 months
*any collections, liens, judgments
*monthly gross income