If the scores are 515,525, and 601..are all scores taken into consideration for loan approval or just the mid-score? Yearly income 70K and monthly expenses (including current rental payment) approximately $1990. Would a broker be able to find a lender that could work with a financial situation like that?
2006-11-16 05:53:11 · 8 answers · asked by Cinnamon Gurl 1 in Business & Finance ➔ Renting & Real Estate
If these are your three scores - all three will be taken into consideration to determine an "average" Fico score. Your avg score is about 547. It's not all that great but a mortgage company can definitely find a lender who can fund a loan.
Don't go on your own to a big whig company like Wells Fargo or Citibank - you need to find a realtor and/or loan officer that specializes in funding for ALL types of credit - good as well as bad. You might not receive the best of interest rates, but you will get your foot into the door of your own home - rebuild your credit and then simply refinance for a lower rate in the future.
In addition what happens sometimes is the mortgage company will find an 'initial' lender to fund the loan - usually the mortgage company will do it or another small time lender...and after you close then they sell the loan to an established lender such as Wells Fargo or Capital One, etc. Either way - you can get approved, just take your time and search for the best person to work with your credit.
2006-11-16 06:06:04 · answer #1 · answered by The First Lady 5 · 0⤊ 1⤋
Mortgage lenders qualify you based on the mid-score. There are some programs that will offer an interest rate based on the high score, and there is one lender that will average the scores. But that's not all there is to it. They will also look at your credit history, including balances, types of credit, credit depth, and collections/charge offs. A bankruptcy within the last two years will affect your credit qualification also.
Besides a higher interest rate, your scores will also affect the loan-to-value you could qualify for.
Rick
http://www.fairwaymortgagelending.com
2006-11-16 06:57:40 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Based on your scores, I assumed you have a past BK, a collections or late payments. In case you have one of this, you can still get a loan but banks will take advantage of you and they're going to give you a higher interest rate. You can shop around with different lenders or brokers. Do not apply to big banks like Bank of America, Wells Fargo, GMAC, Countrywide, etc. because usually they don't even entertain you if you have this score. Try to apply to those small brokers you see everyday on your junk mail or penny saver. Most of the time they are competitive rates and lower downpayment, you can get a good one if you shop around. A lot of lenders will take your loan nowadays because nobody wants to refinance or buy a house because of higher interest rates.
2006-11-16 06:13:50 · answer #3 · answered by HouseHunter 2 · 0⤊ 0⤋
They will look at your mid fico, I do recommend you shopping differnet lenders because certain lenders use different credit reporting agencys (some are lenient than others). A lender should be able to help you and even help you get your scores up for a better rate.
2006-11-16 06:08:44 · answer #4 · answered by what tha 2 · 0⤊ 0⤋
Normally they lenders look at the Mid score. However there are programs (specials) that certain lenders do offer that you can "buy into" (this means you pay POINTS or a higher int. rate) so they will look at the high credit score.
I know that there are several lenders that I could send your scenario to that I could get this done.
Feel free to contact me soren@c21uptown.com and I can see what I can do.
2006-11-16 06:32:48 · answer #5 · answered by so3503 2 · 0⤊ 0⤋
The score that the lender takes into consideration is the middle score which in your case is 525. There are programs that you may be able to qualify for you can contact me for more details at Erick@onlinefsl.com
2006-11-16 09:01:15 · answer #6 · answered by Andy L 1 · 0⤊ 0⤋
I am a branch manager for a lender. We typically use the middle of the three ficos, however I do have a lender that will use your high score! We will have no problems qualifying you for the loan program that you desire! Please email me at ryanw@cmgcap.net.
2006-11-16 07:14:44 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Most use a middle score if they report to all 3 bureaus....
Debt to income ratio is roughly 34%, which is well within most lending policy since max. D/I ratio is 40%. You can get a loan but may be penalized slightly with a higher rate since your scores are only fair.
2006-11-16 06:06:02 · answer #8 · answered by boston857 5 · 0⤊ 0⤋