Need Guidance: Pre-Approved $440K 5% Down ($417 Financed)/6.35%

[ficonovice]

I've been pre-approved for a $417K mortgage @ 6.35%. My mortgage broker told me my middle fico score was 697. Actually, 697 is my low score (TU). My EX is 751 and EQ is 752. It turns out my broker says she was only able to run (or only received 2 scores) so the 697 was treated as my middle score.

I asked if my interest rate would be better based on a score of 751 vs. 697 and she told me no, the rate would be the same. She said there's been an uptick in rates in the last week or so from the high 5% range to the low 6% range. She considers my credit great with a 697 and I have been pre-approved.

Is 6.35% a reasonable rate or can I get a better rate with scores of 697, 751 and 752? No debt to speak of and an income of 90K.

Thanks for your help...

[fishbjc]

our rate is 5.125, dh scores were in the low 600's at the time.  I think you can do better.  That's going to be quite a large mtg. payment.....sure you want to do that to yourself? 

I don't know if our dp had anything to do with it.  We bought our home, basically unfinished for 299k, put down 70k, paid about 20k to finish it off.

Message Edited by fishbjc on 02-20-2008 07:30 AM

[ShanetheMortgageMan]

ficonovice, rates have been going up for the past 3 weeks... but a 6.375% is definitely on the high side for your scores/situation, comparing rates would also depend on the fees on your good faith estimate (GFE).  Did you receive one of those yet?

With 5% down & a 680+ score you qualify for the same rates as someone with a 850 score and 30% down.

Where are you buying?

[MidnightVoice]

Right now my HELOC is only 6.65%!

[ShanetheMortgageMan]

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MidnightVoice wrote:

Right now my HELOC is only 6.65%!

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It's quite nice that the HELOC rates have been coming down, due to the Prime rate being lowered, which stems from the FOMC dropping the Federal Funds Rate.

[MidnightVoice]

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ShanetheMortgageMan wrote:

It's quite nice that the HELOC rates have been coming down, due to the Prime rate being lowered, which stems from the FOMC dropping the Federal Funds Rate.

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It is VERY nice.  I pay double payments anyway, all the extra to principal, and it is going down very nicely. 

[ficonovice]

Shane: I did receive a good faith estimate and I live in Maryland where real estate is fairly pricey. I just applied on Monday with a broker I previously worked with and have been pleased with her promptness and professionalism. Was pleased to receive the pre-approved paperwork so promptly, but the 6.35% did strike me as high.

Based on my scores, income and lack of debt, what do you think is the most reasonable interest rate I could qualify for?

Thanks.

[Anonymous]

If all of your other factors are good (low PITI, good employment history) then your stats sound pretty close to mine (I had a 702 mid score, $395k financed).  5.5% 2 weeks ago, but rates have been going up since then... but only a 1/4 point or so I think.

[Anonymous]

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ficonovice wrote:

I've been pre-approved for a $417K mortgage @ 6.35%. My mortgage broker told me my middle fico score was 697. Actually, 697 is my low score (TU). My EX is 751 and EQ is 752. It turns out my broker says she was only able to run (or only received 2 scores) so the 697 was treated as my middle score.

I asked if my interest rate would be better based on a score of 751 vs. 697 and she told me no, the rate would be the same. She said there's been an uptick in rates in the last week or so from the high 5% range to the low 6% range. She considers my credit great with a 697 and I have been pre-approved.

Is 6.35% a reasonable rate or can I get a better rate with scores of 697, 751 and 752? No debt to speak of and an income of 90K.

Thanks for your help...

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Although I could probably do slightly better (I'm a loan officer) that's actually accurate - rates HAVE gone up a chunk in the last couple weeks. 

I'm in the Baltimore, MD area and I could probably do better, but to really tell you the whole story, what kind of points and fees are in that quote so you can compare apples to apples?

Message Edited by Joe77 on 02-21-2008 06:57 AM

[ShanetheMortgageMan]

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ficonovice wrote:

Shane: I did receive a good faith estimate and I live in Maryland where real estate is fairly pricey. I just applied on Monday with a broker I previously worked with and have been pleased with her promptness and professionalism. Was pleased to receive the pre-approved paperwork so promptly, but the 6.35% did strike me as high.

Based on my scores, income and lack of debt, what do you think is the most reasonable interest rate I could qualify for?

Thanks.

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Probably about .25-.375% lower in rate.