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Working Toward 640!

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GirlMelanie89
Established Contributor

Working Toward 640!

Well, today I went to see my LO for the first time and he was awesome! I now have a gameplan as to what I need to do become a homeowner. After running the numbers for different scenarios, best case, I could qualify for a $156K new construction home, 3.25% 30yr fixed FHA interest rate and seller paid closing costs with a 640 FICO mortgage score and 3.5% down. Worst case, I could qualify for a $129K townhome with a 3.75% 30yr fixed rate with a 620 FICO mortgage score; however, considering for an extra 20 points, I could have a home built to suit and lower interest rate...I am definitely pushing towards that goal!

 

By end of April, all of scores from EQ, EX & TU should update with my 1% utilization. Then, I will repurchase my mortgage scores from all agencies and see where to go from there. Hopefully, the lowest middle score will be at that threshold, if not, I will wait a few months until it does. I'm thinking I'd be happier with a house and lower interest rate later, as opposed to a townhome (with HOA fees) and higher interest rate sooner! 

 

Question though:

If May came, and I my score was 620 at preapproval and contract signing, but 6 mos later after the home was completed and ready to close, but my score increased to 640, could my interest rate drop to the 3.25% or would I be stuck at the higher rate? ( I hope that makes sense)

Hypothetically speaking, my score could continue to increase during the building phase.  

Bankruptcy discharged: May 2014 Starting Score: 571 Goal Score: 700
Current Score: 676 (EQ FICO) 674 (EX FICO) 662 (TU FICO)

Mortgage Loan Originator in Kentucky
4 REPLIES 4
Anonymous
Not applicable

Re: Working Toward 640!

They're not going to lock you in a reate for 6 months. Your rate will be whatever interest rates are at that time, could be higher, could be lower.

Message 2 of 5
Sassy_Taurus
Frequent Contributor

Re: Working Toward 640!

Good luck @GirlMelanie89 you can do it
Message 3 of 5
GirlMelanie89
Established Contributor

Re: Working Toward 640!


@Anonymous wrote:

They're not going to lock you in a reate for 6 months. Your rate will be whatever interest rates are at that time, could be higher, could be lower.

Makes sense to me!! Hopefully it will be lower!! 
Bankruptcy discharged: May 2014 Starting Score: 571 Goal Score: 700
Current Score: 676 (EQ FICO) 674 (EX FICO) 662 (TU FICO)

Mortgage Loan Originator in Kentucky
Message 4 of 5
GirlMelanie89
Established Contributor

Re: Working Toward 640!


@Sassy_Taurus wrote:
@Anonymous luck @GirlMelanie89 you can do it

Thank you darling!!! I'm excited (if everything goes well) lol. 

Bankruptcy discharged: May 2014 Starting Score: 571 Goal Score: 700
Current Score: 676 (EQ FICO) 674 (EX FICO) 662 (TU FICO)

Mortgage Loan Originator in Kentucky
Message 5 of 5
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