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What are my chances?

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Anonymous
Not applicable

What are my chances?

Hi Forum,

I am new to this whole house buying game and with FICO my experian scores 8 seems to be really low not sure what to do other than time.

 

Debt: $0

Monthly payments other loans: $0

Rent for last 8+ years: $2,300

Fico score 8 total: 551

Fico score 2 total: 582

Income: $200,000

Equifax Credit score: 757

Transunion Credit score: 726

Experian Credit score: 551

Down payment saved: 60K

 

What are my chances on a $440,000 home?  Do mortgages always use FICO 8?

Message 1 of 22
21 REPLIES 21
Anonymous
Not applicable

Re: What are my chances?

Also looks like I have four closed accounts on experian that show up all say paid with the exception of one for $309 as negative and I have a collections for $319 would that be impacting my score that much on Experian?

Message 2 of 22
Girlzilla88
Valued Contributor

Re: What are my chances?

I would say it depends really on your state they recommend a middle score of 650 BUT that doesn't mean it would be a no for you necesarily.....One thing I will add is I would make sure your DP is 20% or 25% depending on your state so that will save you a BIG chunk on your monthly payment Smiley Happy      I didn't have a whole 20% for down (for my state) and it was almost a 600 addition a month but when I do pay the house off I will see some (not all) of that back so be mindful of that Smiley Very Happy      When I checked with my realtor and finance person (sorry don't remember term for him) they pulled the middle score on my mortgage scores here and it matched perfectly mine was 711 at the time Smiley Very Happy     Your income will definitely help you as well Smiley Happy







Message 3 of 22
Girlzilla88
Valued Contributor

Re: What are my chances?

If you do have time I would defintitely see about getting those removed if you can pay off the one and see if you can pay and get rid of the other collection (collections will always hurt your score and if you can jump your score if you have 2-3 months) that will make a difference in the apr for your home which can save you thousands







Message 4 of 22
Anonymous
Not applicable

Re: What are my chances?

Thank you!! What is "I would make sure your DP is 20% or 25%"

 

I am in New Hampshire

Message 5 of 22
Anonymous
Not applicable

Re: What are my chances?

Also when you say middle that means using the 3 credit bureaus FICO score and the middle one needs to be 650 or above correct?

 

 

Message 6 of 22
Girlzilla88
Valued Contributor

Re: What are my chances?

Yes but be sure you are under the MORTGAGE FICO you don't want to be on the one that is used for Bank/Cards or the Vehicle score you want to make sure your MORTGAGE one is at least 650 or higher for better rate/deal if you can ideally hit that 700 middle but I'm not sure how soon you are wanting to buy?!    Smiley Happy







Message 7 of 22
Girlzilla88
Valued Contributor

Re: What are my chances?

So when you sign in to your FICO on the main page where it shows the first set right under it it will say "View additional FICO versions used for Mortgage, auto and bank...."     Click on that one Smiley Happy    when I click on mine it will show you Experian as the main one but Mortgage is at the top left right under bold print 

"Commonly used in Mortgage lending"   and then you can use the tabs to switch to Transunion or Equifax to see what theirs says Smiley Very Happy    If you don't have the one that shows all 3 please get that one to keep a better eye on it until you get your home then you can 'downgrade' to one report or the once every so often report 







Message 8 of 22
Anonymous
Not applicable

Re: What are my chances?

Thank you for the help!!!

 

I did do that and:

Equifax FICO: 631

Transunion FICO: 638

Experian FICO: 551

 

So the middle is 631 and the target to get a good rate is 640 to 700?  My problem is I dont have a lot of movement ohter than time to create a better score I am affraid.  I am looking at a new construction and will have about 88K on a $440K home by the time closing would happen in 7 months.  They are asking for 5% down right now to get going on something will they pull first to see if I qualify and then re pull in 7 months to see where I am?

 

 

Message 9 of 22
Girlzilla88
Valued Contributor

Re: What are my chances?

I would make sure your Down Payment is 20 or 25% depending on New Hampshire it may not be that high I know for Ga it's 20% that they ask you be at 'ideally' to help save you on your monthly payment so find out what NH is Smiley Very Happy    But you go based off the amount of home you want that you would qualify for so if you are shooting for 440k (I think that is what you said sorry) then calculate 20% for DP off of 440k which is 88k for Down Payment!    But that is IF NH is 20% that may be a state that is lower or it may be higher like the 25% not sure sorry.







Message 10 of 22
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