I applied for a mortgage through a bank (NationalCity) here in town, I didn't count on getting it. My brother just got one, and he had some neg's on his report but they told him specifically what he needed to fix. I was hoping for the same thing. But, they did give me 2 local mortgage companies that WOULD give me one, but he said it would be at a higher interest rate. My question is, I know it's better to get a bank mortgage than going through a mortgage company. but how much of a percentage rate increase is expected? Are there any downsides to getting a mortgage through a mortgage company than a bank other than a slightly higher rate? How much higher is normal?
my scores.... since I don't subscribe to any online credit monitoring services anymore, I don't have exact #'s, but they are about mid 500's. Derogs... mostly older stuff from a divorce: Nissan repo, should be gone this year. $7000 Sears is my newest CC...$600 late last year American General Finance $900 from 1998 these are my most expensive ones, the rest are probably all under $2000 total. I don't have my reports in hand right now. I don't know, I still might try to apply...what do I got to lose, I haven't had a hard inquiry on my reports in well over 9 months... P.S... thanks for the info Jlynn...worked GREAT!! I owe you one.
The basic rule of thumb is that 620 is usually the minimum acceptable FICO score to get a mortgage by a major bank. I am surprised that with your history and FICO, that you would be able to get any mortgage, or anything below 10%. It will be tough, you probably will have to have a low debt to income ratio (monthly debt payments probably can't be more than 30% of your income), and you probably will need 25% cash down + closing costs + origination or discount points.
Nissan Repo and American General...are they paid off? Most companies with a decent mortgage rate offering will require that outstanding CO's be paid off.
No, neither is paid off. My Nissan is scheduled to be pulled off in October. I'm trying desprately to pull it off now. TU keeps changing my closed date on it to re-age it. I'm worknig on it now, but at the rate I'm going, it will be Oct. before that happens. AGF, I don't know what to do with this one. I KNOW even if they find a contract, my name is not on it (my ex's is while I was in Japan). We were going for either the FHA or VA loan.
I don't think it matters if it's a mortgage company. In fact, I've almost always been with a mortgage company, and the one time that I was with a bank, they sold it to a mortgage company! Go to a mortgage broker instead of straight to banks or mortgage company. They'll have access to a large number of lenders, and if they're any good they'll also help you work on your report.
Hedwig...are the interest rates through a mortgage company a lot higher than a bank, if so about how much higher is average?
As far as I know, they're about the same. Right now I have a 30-year fixed at 5.9%, but I got it a year ago. A mortgage broker can find this out for you as well. In fact, my credit union, which used to be a good deal, is now about a quarter point higher than some of the mortgage companies. But I think they're comparable.
