What interest rate should I expect with 620-640 FICO?

Question

I am in the beginning stages of buying a house. I am a first time home buyer and have enough for 20% on an average priced house. I just checked my score and they gave me 3 scores; the lowest is 620 and the highest is 640. So before I go into the mortgage bank office, I wanted to see what my rate would be like...

Thank you so much

Answer 1

bank generally use the middle score to qualify you for a mortgage. besides the score they use your income and assets. if you are using a conventional loan meaning you are going to be able to verify your income and credit then you should get a good rate today probably in the low 6% range. if your income is not being used to qualify you (stated income) then your rate can be a little higher.
lastly it depends on the amount of your motgage if you are looking for a loan that is considered a jumbo loan (above the FNMA limits) then your rate may be slightly higher.
good luck

Answer 2

Hey Eric, Don't use the Bankrate website, it is the biggest scam on the planet. I have worked for a few companies that post rates on there and what they post you can't get. They draw you in with low rates and then something always comes up and they have to raise the rate. That's why you don't see any of the major banks on there and if you do their rates are real and not some joke.

With your credit scores and a 20% down payment you will get the best rates going if you are going full documentation. Which means you can show the bank proof of assets and income.

email me if you need help I work for a national lender and would be glad to try and help you out.

Good Luck,

David

Answer 3

To be honest with you a 620-640 depending on the system the broker is using a person is classified either A,B,C,D paper

A-B is people with high fico scores..

C-D is the fico score you would be classified ...
I would try to not open any new charge accounts and establish about 3 open trade lines--which is credit cards etc..
and of course people are going to tell you can get a mortgage, because they are going to charge you up the fanny for a mtg.

Maybe, go to a couple of free seminars on buying a house..
the bank i work for.. LaSalle bank offers these classes for free and they have alot of information.

good luck

Answer 4

With that score you can get a great rate and with that down payment you are in the minority so don't be afraid to shop down and shop around! You should get the daily average rate. 620, though is the lowest you can go and still get a great rate. You can educate yourself on the inside front page of any newspaper, or log onto http://www.bankrate.com/brm/calculators/mortgages.asp . They are the BEST! What state are you in? Maybe I could give you a referral if you are in NY, OH or PN... Congrats on your dream about to come true!