Is it true you're basically approved for a mortgage if your fico is at least 720?

Question

I've read that with such high scores, you can qualify (hands down) for a good 30 yr fixed mortgage and no up front costs. Is that true?

Answer 1

YES! There should never be any upfront costs on a mortgage other than the appraisal that should be paid by you directly to the appraiser. As far as the closing costs, this is paid at close of escrow. You can negotiate with the seller to pay your closing costs. Most lenders will allow up to 6% seller consessions. Some will exclude pre-paid and reserve items like interest and taxes. You will have to find a motivated seller to do this. With a score of 720 there are many 100% programs you can qualify for. This will allow you to purchase with no money down. Maybe that is what you meant by no up front costs. I am a mortgage consultant for Direct Acess Lending. I have been in the business for 8 years now and would be happy to answer any further questions you may have in the matter of a home purchase.

Answer 2

For the most part it is. Having that good of a credit score opens up a lot of doors for you. In most cases some other factors come in (downpayment, income to debt ratio's...), in order to get a "good" rate, you will need to have sufficent income and steady employment. Most banks now have 100% 1st time homebuyer programs that you would qualify for. If you dont have enough income coming in or unstable employment history, you can go through a mortgage broker for different type of programs. You will pay a higher interest rate but you will end up getting the loan. One program is a stated program, basically if you have been on your job for at least 2 years, you put that on the application and they ask you how much money you make a month. The broker/bank will not verify the amount you put down on the application within reason, they will only verify the dates of employment and the job title. One word of caution though is dont say you work at Mc Donalds making 150k a year thats a red flag and it will be questioned. As long as your income is inline with your job title it wont be verified. The other program is called a No Doc program. You fill out a mortgage application leaving out where you work and how much you make and thats it.
Basic rule of thumb- If you can prove your assets and income you get a good rate with a good credit score, If you can only prove you have been working for 2 years in the same line of work with a good credit score, slightly higher rate, if you cant prove anything you will get a very high mortgage rate.

Good thing is, if you can afford it and just need to get into a house now, use your credit score to your advantage if you have to get a higher rate because of your circumstances, take it. Spend 2 years keeping your payments on time and improving your situation then refinance into a lower rate.

Answer 3

Hold on a bit. If your FICO is 720, you're in an excellent position to get a mortgage, but you also will need to show sufficient income flow to make those mortgage payments. The FICO isn't the ONLY thing they look at. They want to make sure that your job is sufficiently stable and pays enough to make those mortgage payments too !

Answer 4

For the most part I've seen that to be true. 720 is pretty good. But, I've rarely seen any loans that weren't VA that had over 100% financing. More likely, they'll wrap the upfront costs (like appraisal and inspection) into your closing costs, and you'll still pay for it, just not in the beginning.

Answer 5

May be I Can Help You:

Just try:

http://www.proloanz.com/

http://www.apply4less.com/mortgage.htm

http://www.mortgagerefinancingatlowrate.com/

http://www.topamericanmortgage.com/

They can give you the best MORTGAGE HELP

Answer 6

No, because other factors come into play ie: debt to income ratio, income amount and 1st time buyer status.

Answer 7

Absolutely, even better if you're a first time buyer.