Mortgage prediction?

First, do the prudent thing of getting all three FICOs, to know where you actually stand. You're marginal in the current market for a mortgage. It's almost too close to call.

On the plus side, it looks like you have very little debt (only SallieMae), so that is good. The old debts are paid, also good. Your debt to income ratio is decent, all positive.

The downside will be your actual FICO credit scores. Most likely they will be lower than the FAKOs numbers you listed. This will be a strong negative.

My advice, try disputing the old chargeoffs as quickly as you can, any deletions will be a great help to your FICO score.

 

Exactly what Biz said. In addition, try a goodwill communication to all of the furnishers of information which you paid off. A couple may bite.

 

I'm in the middle of applying for a mortgage myself and my fico's are probably lower than yours... last time my credit was pulled they were ~560. From what I've been told, the mortgage lenders usually pull all three and then use the middle score. I've also been told by several lenders that if your middle score is 620 or above you should be pretty easy to get financed. 680 and above you should be able to get financed pretty much anywhere you want. No late payments in the last year is very important and no late payments in the past two years would be very good if you can swing it.

That said, it is possible to get approved with lower scores, but plan on paying a bit. Even with my middle score at about 560, one late payment from July and a few that are about 11 months old I was approved for a 180K mortgage. They are requiring 5% down and it was at 10.75% interest, however, for an additional $5000 at closing I'm able to buy the interest rate down to 7.75, which isn't too horrible. The big downside for me, however, is that with this loan they would require me to pay mortgage insurance at a cost of $400 per month. Once I have at least 20% equity in the home I can remove the mortgage insurance.

Right now I'm looking to get the extra money to put 20% down initially... that would avoid the $400 PMI payment and, according to my lender, should lower the interest rate somewhat too.

Your other option is an FHA loan, which apparently doesn't go by credit score. That's a government insured loan that can work for people with lower credit scores. I was told that I didn't qualify because of my recent late payments, but from what you've said you should be able to qualify with no problem. I believe the interest rate for that would be around 7% and they require only 3% down. They would require mortgage insurance as well, but it should be well under the $400/month I was looking at.

As far as advice goes, definitely get your real FICO scores so you can see where you stand, and from everything I've been told you should be in pretty good shape as long as your middle score is at 620 or higher. Even if it's not, though, you should be able to get financed. Let us know how it goes.

Good luck,
Brett

 

www.myfico.com

I think it's around $45 for all three scores, but it's definitely worth knowing them. If you search around a bit you can find a coupon for like 10 or 15% off to save a bit of money. Alternately, if you definitely want to apply for a mortgage and you've done all you can do with your credit report you can simply apply and then ask the lender what your scores were. I believe that they are required to tell you if you ask, and that way you can save $45.

Brett

 

If I were you, I'd call a mortgage broker in the area and ask if you can get a conforming loan with those scores. DO NOT let them pull a report. Tell them you can bring copies to them but don't want a pull until you decide if you really want to do it.

I think your scores are pretty good right now, but since the mortgage market has changed so much it's hard to say. Ask and see what happens.

 

I would suggest you do some disputing first to see if you can get the score boost. With the mortgage industry being quirky right now, I have been told that 670 + mid scores are getting very good rates. If you can be patient as in my opinion the rates will continue to come down as the market/foreclosures are climbing. Be patient and see what you can do with some disputes. Also, look for any first time home buyer discounts.

 

Another reason to go to a local broker. They will be more familiar with any programs for first-time home buyers. Many states offer some sort of program to help people get their first home.

 

Foreclosures are not climbing. They are skyrocketing, going through the roof. Foreclosures in September were up 99 percent over September of last year and it is going to increase percentage wise very rapidly for the next few years. Countrywide Homes is the nation's largest mortgage lender and they are in deep trouble. They have at least 35 million homes in their portfolios and the figure may be much more than that. New York City alone has seen a doubling of it's foreclosure rates recently. We are heading for a major collapse of the American Economy and the home foreclosures are just the tip of the iceberg. It isn't far off either. Foreign news sources are already talking about it and when that starts happening you can rest assured that you will wake up one fine Monday morning to find that the Dollar has collapsed over the weekend and the home you thought was worth $100,000 is now worth almost nothing. You will be saddled with a note that is going to cost you at least $200,000 in the end and you will be doing it on a paycheck that is bringing home maybe 10 percent of what you had the last paycheck. In the meantime food prices will skyrocket because most of our food is now produced in other countries. Gasoline will be so expensive you will be riding a bicycle to work. There are only two things that can keep that from happening and that is to pull in our horns from overseas quickly and quit borrowing 70 percent of what the government spends immediately and start producing much more at home. The last is the main hope for our economy and it alone could pull us out because as the dollar continues it's downward spiral against the Euro American goods become much cheaper in foreign markets we are exporting more and more American produced goods overseas. Since we know the Government won't quit it's mad hat escapades overseas and quit borrowing so much money the only hope we have is that our exports escalate enough to keep us from going over the brink.

 

Your middle score is good, so you should be in good shape.

Rates can change day-to-day, depending on the market and the prime rate. But you should qualify for a very good rate.

 

With the latest rate cuts by the Fed, I'd guess you'll qualify for a rate between 6.25%-6.40%.

 

Foreclosure investing is really hotting up the scene nowadays. As more and more people are clearing off the debts by their property saleâ?¦..its a good way to capture some profits and quick ones too. realpropertyprofits.com Foreclosure profits are not only earned quickly but they are easy to earn also provided you know a foreclosure system. You just need a proper plan and way to go about it and then you can be good at judging the circumstances.

 

re: Magma

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Right--why else bump old posts with useless information.