My combined credit score is 605. It is so low because I have debt that is at least 6 yrs old. I have been on my job for 6 yrs. My debt ratio is next to none. Is this too much or do I need to continue to shop? I don't want to let too many people run my credit because it will only lower the score.
2007-11-27 04:25:59 · 10 answers · asked by R.Womack 3 in Business & Finance ➔ Renting & Real Estate
That's a good rate for 605 but I would figure out why you are low. Is it late payments or too many cards. Close some department store accounts if you have them.
Another TIP. If you are buying a New Construction home make sure you are funding the escrow properly for the correct tax assessment. By conservative and over-fund the first you. That way you won't get surprised.
File for Homestead exemption fast.
2007-12-01 04:05:17 · answer #1 · answered by uscrodeu 3 · 0⤊ 0⤋
If you can get a thirty year fixed finance with that rate, I'd go for it. You're below the standard and current accepted credit score of 625 for "A grade financing." They are nailing you roughly one percentage point for your subpar credit score. That's not too bad.
You can shop around, advising other brokers what your combined score is, and ask for comparisons. Just don't let them run your credit report. My guess is that it won't help much, however, since mortgage brokers generally have the same sources of money available to them, and you will probably find the same general situation no matter where you look.
2007-11-27 04:34:17 · answer #2 · answered by acermill 7 · 0⤊ 0⤋
You have a certain window for people to run your credit when you're making a big purchase, like a house. During that time it won't lower your score. If you have debt that is 6 years old and you can wait, I'd wait for the 7th year when that stuff falls off your credit report. Big stuff like bankruptcy won't go away, but small stuff like old utility bills will fall off, and it can greatly increase your score. You should be able to do better at that time. 7.25 seems a little high to me, but I don't know what your particular situation is. I'd shop around.
2007-11-27 05:39:07 · answer #3 · answered by Anonymous · 0⤊ 0⤋
With that credit score, 7.25% is GREAT>
However, you need to ask yourself this question. Can you afford this house. You state that you have debt that you can't pay off from 6 years ago.
In your case, I wouldn't go over 28% of your gross income to go towards the total mortgage payment.
Take your monthy GROSS (before taxes, etc) and (x) it by 28%. This is what you should be spending on a mortgage payment. Anything more will get you in trouble down the road.
2007-11-27 05:22:00 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Without knowing the rest of the loan details I would say that is a decent rate with a credit score of 605.
2007-11-27 04:30:40 · answer #5 · answered by katlanta 2 · 1⤊ 0⤋
Don't worry about the lowering of the score as long as it is for the same purpose(buying a home) it won't count against you!. I would probably get one more opinion. Find another mortgage broker that you like and trust. or you could go online and try something like lendingtree.com Mortgage brokers are supposed to find you the best loan based upon your financial situation. Good Luck.
2007-11-27 04:32:01 · answer #6 · answered by helprhome 5 · 0⤊ 0⤋
I would check around. My company has signed with Fannie Mae as a preferred lender. FHA has lowered their credit score acceptance levels. I just got a 577 down to 6.375%. I would suggest contacting a mortgage company not a broker that you are paying fees to for their service and explore a government backed program for a lower rate. Your job consistency and low DTI are in your favor . If you need any other info email me.
2007-11-27 16:25:18 · answer #7 · answered by yourmtgbanker 5 · 1⤊ 0⤋
My best friend is a mortgage broker. He can get a better rate than any bank rate. Best thing for you to do is hit a couple of banks and then talk to a broker and see who offers you the best rate.
2016-05-26 03:01:23 · answer #8 · answered by ? 3 · 0⤊ 0⤋
You are in the subprime market so 7.25% is not bad. Your score is too low for the best conventional rate (today it is 6%on a 30-yr fixed.
2007-11-27 04:32:43 · answer #9 · answered by thinking-guru 4 · 0⤊ 0⤋
You're subprime, so that's a good rate. And when mortgage companies run your credit, it doesn't lower your score.
2007-11-27 07:58:00 · answer #10 · answered by Anonymous · 0⤊ 0⤋