My wife and I are applying for our first mortgage this week. We have equal income: I make 72k, she makes 70k. Hers scores: TU; 642, EQ: 639, EX: 662 My scores: 692, 688, 642 We have $35k saved. We have $36k in combined student loan debt, on which we pay $300/month. No other debts outstanding. We are looking to borrow $250k. Two questions: 1. Will we qualify for a 30-year fixed in the current climate? 2. Whose scores will they use? 3. What kind of rate might we get? THanks, in advance.
Due to your credit scores being under 700, and your student loan obligation, + whatever other debts you have, you might be approved with a 20 to 30 % downpayment. but be prepared for loanshark level fees/interest rates.
I'm not sure scores have to be over 700. I got a conforming loan in the 670 range. It used to be middle score over 620, I'm sure that's gone up some. The best thing to do is call a mortgage broker and ask the question. Don't give authorization to pull your reports, just ask what kinds of scores are needed to get a conforming loan, and how much down payment would be required. You can even offer to show them your copies, but tell them you don't want the inquiry until you're sure you want to do this.
What?!? See my scores below. I go to close next Tuesday with a 6.5% (bought down to 6%), 30-yr fixed with no pre-payment penalty, all closing costs rolled in, sale price was what you're looking to borrow (loan amount is higher due to closing costs), I have slightly more student loan debt and am only paying $100/mo, and I have a car loan I owe $24k on, and my wife doesn't work, and I don't make as much as you and your wife combined, though I do make more than either of you. I'd say you're most likely in like Flint (or is it in like Flynn?) Either way, you'll be fine. And if not, for whatever bizarre reason, look in to building a house and see what the builder's mortgage broker can do. They might be more motivated since they don't make money on the house if you can't get a reasonable loan...
Thanks for your inputs. I am really grateful. We met with a mortgage guy last night. He didn't pull and didn't seem too worried about our numbers (though he asked me to fax him our fico reports). He was giving us potential numbers like 6.1 to 6.3% and saying that it will probably fall a little bit due to some macroeconomic factors. I am going to see if I can fire off some more disputes today.
Also, he is telling us that the scores he will pull will come in somewhat less than what myfico.com gave us. Any clue as to how to determine what they might come in at?
Other than having someone pull them, no. And that would give you another inquiry. I've heard of them coming in lower, I've heard of them coming in higher. With FICO, who knows? The fact that the broker doesn't seem concerned is good.
You should be fine. With your stats, FHA may be an option if you don't have any derogatories within the last year. His scores will likely be about 10 points lower accross the board than My Fico. That is assuming that your not going through Beneficial.
My broker pulled through Kroll and Factual Data and 3 times (all 3 CRA's, 3 times) was a spot on match to what I got of myFICO the day earlier.
