Is it ever too soon to get a prequalified letter? My fiance and I both have credit scores between 680 and 720, never been into collections, and don't have much outstanding debt, $10,000 on a Jeep and $60,000 in school loan debt. Will this affect us from getting a very good rate? We are looking for 6-6.5% on a 30 yr. loan.
2007-03-26 08:14:08 · 6 answers · asked by Bob V 2 in Business & Finance ➔ Renting & Real Estate
I would wait. Just because the way this market is going you never know what will change. The thing is when you get pre-qualified they give you a rate and program and in this market things are changing quickly. I think it's in your best interest to wait a couple months prior to house hunting. As far as rate goes the longest i have seen a rate locked for is 45 days. So if you get a 6-6.5% today that's more than likely NOT going to be the case in 08. Could be better or worse. So I would say wait. =0) And just continue to pay your bills and keep your debt to income ratio the way it is and you guys will be golden!!! Email if you have questions. =0) OHH and another thing go to bankrate.com if you are intrigued as far as how much home you can afford. =0)
2007-03-26 08:21:49 · answer #1 · answered by peapod_mommy 2 · 1⤊ 0⤋
It's way too early right now. Start looking about 90 days prior to your target closing date. Your debt picture will have changed by then (Spring of '08) as will have interest rates. There's no way to tell if you'll be able to get money at that rate today. Too many things can happen between now and then to affect mortgage rates and any guess today where they'll be is pure speculation.
Work on bringing up that 680 score and don't do anything foolish to compromise that 720 like taking on any new debt. Use the intervening time to pay down debt and add to your savings for the down payment and closing costs.
The impact of your debt will matter more based upon your income and the size of the loan that you need than the debt load itself.
2007-03-26 08:21:09 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
It's too early. Your debt picture will look different a year from now, because your credit scores are based on your ability to pay your bills on time.
You could spend the time finding ways of increasing the 680 score. There's no way of knowing what the interest rate will be next year.
2007-03-26 08:18:17 · answer #3 · answered by Venita Peyton 6 · 1⤊ 0⤋
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2016-10-19 23:40:24 · answer #4 · answered by fanelle 4 · 0⤊ 0⤋
You want to wait till 30 days before you go house hunting. The pre-approval letter only last for 30-180 days. About 3-6 months before you go to buy a new house, don't take out any new loans or credit cards. Don't for get to save up for your appliances. I have known people to buy a house then not be able to get what they need after wards.
2007-03-26 08:21:56 · answer #5 · answered by TLC4theworld 2 · 0⤊ 0⤋
Your letter usually expires in 90 days.
There is no way to know if a rate like that will be available in 08, but no one will commit to giving you a loan this far in advance.
2007-03-26 08:18:18 · answer #6 · answered by Anonymous · 1⤊ 0⤋