We are buying a home in Washington state as first time home buyers.
My credit score midpoint is 702 and my husbands is 658
We have no down and are looking at rolling the closing costs into the loan.
The purchase price is 150,000 what is your best guess on our our interest rate and why?
I feel so lost in this world of home buying!
2007-12-11 12:26:07 · 5 answers · asked by chickennosenshi 4 in Business & Finance ➔ Renting & Real Estate
Would it be smarter to go with just my credit score? Can we do that and still use his income?
Right now we are approved for a 6.625 is that high for us?
2007-12-11 12:41:13 · update #1
Also there is no problem on income work history.
2007-12-11 13:00:59 · update #2
Washington State Housing Finance Commission
http://www.wshfc.org/buyers/index.htm
It seems they have plenty of resources there for first time home buyers. The rate is not too bad assuming you are not paying any points.
If you are, you might be better off with a different lender program.
Be sure to get everything in writing and ask questions if you do not understand something.
In my experience you cannot use income from anyone who is not a co-borrower. That would mean pulling your husbands scores into the equation, but they should be fine.
2007-12-12 07:04:08 · answer #1 · answered by Dale H 4 · 0⤊ 0⤋
Rick has no clue what he's talking about - lenders ALWAYS care what your credit score is REGARDLESS of how much you put down (one exception - hard money lenders - but that's only for investment properties, so does not appy).
Keep in mind the best rates on a 30yr fixed are fluctuating in the 5.875 - 6.000% range right now paying 0 pts/0 origination. This assumes you have good, are putting 10% down or more, buying a primary residence, have assets after closing, etc. Any deviation from these items and there's a bump to the rate.
With 0% down you're looking at around 6.375 - 6.500%. With 0% down and lender paid closing costs, you could be in the 7% or higher range. Also, the lender closing cost credit usually is not enough to cover all the closing costs - so get clarification from your lender. As an alternative, I would ask for a 3% seller assist towards closing costs - and if you're still short on cash, then see if your lender can massage the rate a little to incorporate a smaller lender credit so as not to bump the rate up too high.
2007-12-11 21:34:02 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Right now your credit scores are get both your husband and yours.
But credit is only one part. Nobody can buy a house on credit alone they also look at income.
The main thing they are going to look at is this. Are you making 3 times the amount of the house payment? If the answer is yes, you'll get the loan.
The only folks who can buy a house and get a loan WITHOUT credit are those who put 20% or more down. Then the bank doesn't even bother to concern themselves with credit as the risk is gone.
2007-12-11 20:48:39 · answer #3 · answered by Anonymous · 0⤊ 3⤋
My credit score is higher than my husband's and I was able to get a mortgage in my name only in order to get a better rate. They still allowed me to add his income. Just be sure you have his name on the deed. When his credit score (and hopefully the market) improves you can refinance and add him to the mortgage (further helping his credit score).
2007-12-11 22:17:08 · answer #4 · answered by lilmissqtpye 2 · 0⤊ 0⤋
In today's financial market, you will have a tough time finding a good home loan. After the sub-prime fiasco and housing price dip, lenders want to see good credit scores and people put down payments on homes again.
2007-12-11 20:31:07 · answer #5 · answered by Uncle Pennybags 7 · 0⤊ 2⤋