If my credit score is?

Question

in the mid-600's and my hustband is in the mid-700's and with our combined income we make mid-100's do we have a good chance at a good mortgage rate??

Answer 1

You have a good chance of getting a awsome rate. Congratulations on having really good credit - Lenders will do 100 percent financing with a middle score of 580+ On the conforming side, you will have MI insurance on anything over 80 percent of the purchase price. But ask the lender if you have to have MI insurance. So lenders will add .25 to the rate so you do not have the MI insurance. But once the loan amount gets down to 79 percent of the loan amount, than the MI drops off, where as if it is in the rate, your rate stays the same. Just a little bit of information. Talk to a Broker one who will pull your credit one time, and lenders will go off his credit - that way you do not have lenders pulling your credit numberious times.

Other things to consider:

ADDITIONAL HELPFUL INFORMATION TO KNOW

Decide on how much you want to spend, if you want to escrow the taxes and insurance. Say the taxes are 1200 a YR and insurance 800 a year (just an estimate, ok) That is 2,000 a year divided by 12 = 166.66 If you paid 1,000 a month now - (166.66) your P/I Principle and Interest would be 833.34. Now you decided on the price range you are looking into. If you have great credit, a 1 loan at 130,000 at a rate of 7 percent over a 30 year time would be 864.89 - This is just a estimate - ok -

It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thur a realitor, and the seller has to pay the realitor their fee which runs from 2-6 percent of the selling price, and you ask for 4-5 percent toward closing cost -assistance) Follow me so far??

Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down

Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). This will tell you the up-front closing cost (etc) associated with your loan. This is a estimate only - not the final - but it does help you figure things out.

Types of loans:
There are also, interest only loans - adjustable loans, option arms (where you pick the payment, from 4 payments, including interest only). Interest only are lower payments, but nothing is being paid on your home. Some self-employed ppl like the payment options, in a lean month when money is tight., they can pay a lesser amount.

Go to thise websites - they have a home buyer guide on them that you can download and print off.
http://www.fanniemaefoundation.org/...

http://www.fha-home-loans.com/

http://www.freddiemac.com/

Good Luck, and if I can help in any way check out my web site, for links to all the credit reporting agency’s and other useful information.

Answer 2

It depends, there are many options for getting a good rate with those scores are these your mid score or the highest? Most lenders will take the middle out of the three credit reporting agencies. Also it depends on what kind of property you're looking at mobile homes have a tendancy to be a higher interest rate than stick built just because there are less lenders out there for them. Also, if you currently have a mortage look at what you're paying now, depending on the amount of the loan you'll need to figure in about 3-5k+ for closing costs for refinancing depending on the brokerage/lender, this may make your monthly payments close to or equal to what you're paying now so lowering your interest rate by a little bit would not nessicarily be the best option. If you need cash out of your equity for home improvements or debt consolidation then it is definatly possible to not only get a good rate but take care of some things that you've been looking to get rid of. Overall, it depends on what you're looking to do. I would definatly contact a lending insitution or mortgage brokerage so you can find out more.

Joe Hermann
[e-mail]

Answer 3

Probably. Talk to a loan officer at your banking establishment, or perhaps a broker to get an idea of the rates you'd qualify for.

Answer 4

Yes, but also make sure you have a good work history and some $$ in the bank to seal the deal

Answer 5

Absolutely.

Rick Lanicek
www.primelendingonline.com

Answer 6

Yeah, you should get a decent rate. But hurry because the housing market is getting bad. The good news is that it's a buyer's market! Good luck!

Answer 7

good credit runs into the 700....and up...so yours is kind of low, but it could be a possibility that you might get a good low rate on mortgage loans....

Answer 8

definetly! It also depends on your debt ratio though. If your debt ratio is less than 40% then you should get a great interest rate. Hurry up though, I heard the rates are rising!

Answer 9

Yes, I would think so, 700's is pretty good from what I understand .

Answer 10

Sure-- especially if he makes more than you. The higher income individual MUST be the 'primary" applicant. SO if his income is higher, it should be quite easy.