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ok, i pulled credit scores. his are 601,706,656. Mine 684, and 670 from myfico.com. for some reason hey couldn't give me equifax score. We live in indiana and are first time home buyers. we gross approx 75k. I have approx 35,000 in student loan debt, truck lease at 415 a month, and 9,000 in credit card debt. (I've never been late on any payments). Looking to buy a home under 120,000. we will be gifted money approx 3-5% for down payment. It is worth heading in to get a pre-approval? I've found a perfect home and kinda scared how the bailout will effect us getting a loan in 6 months. also, i'm not sure what scores they'll use from both of us.

any advice would be fantastic.

smithsussane · Posted: Wed Sep 24, 2008 9:27 pm Post subject:

Hi dylan!

Welcome to the forums!

Getting a pre-approval letter will make things easier for you. When a seller sees that you have a pre-approval letter he/she is assured that your credits have been checked and that you will easily get a loan. So the first preference of the seller will be you.

Generally, the lenders either use the middle score or the last score. But I don't think it will be hard for you to get a pre-approval letter as you were never late on payments and your credit score as of now is good.

Feel free to ask if you have further queries.

Sussane

elnoralittle · Posted: Wed Oct 01, 2008 5:01 pm Post subject: Get pre approval

Go ahead and contact a lender for pre-approval. You can go into a transaction knowing the mortgage payments for specific sales prices, you can write a contract with pre-approval in hand, which is always a plus.

Make sure that you obtain your own realtor though. Your realtor works for you, using the sellers realtor as a dual realtor, might not serve your interests.

Your profile as stated, makes you a great canidate for a mortgage.

Good luck!

Be sure to contact the forum when you find a lender and ask any questions you are unsure of, just to make sure you are getting the right deal!

jdlegall · Joined: 29 Sep 2008 Posts: 23 16.68 Dollars($)

Not sure what type of interest rate you will receive. Your DH score is 656 and your score may be a 670. Can't be sure because Equifax is mia.

If you want a quick boost to your score, pay down the $9000 in credit card debt. If your total available credit lines are $15000, keep your total credit card balances at $1,500 or 10%. You should see a change within 30 days when your cards report to the Credit Reporting Agencies (CRAs). Take a good look at the Understanding Your Score section on MyFico and it will tell you what's keeping your score down. Chances are you'll see something there that says you've got high balances.

If your scores are higher than his, and from what I see they are, the lender will most likely use your scores. At the moment a 670 will get you a 6.35% interest rate I believe. You would need $2000 per 1% to pay that down to a 5.35% rate. If you can get your score to 705 you will get a 5.96% interest rate. Imagine paying a point down on that rate on a 30 yr/fixed. Very Happy

You can ask equifax directly for your score but expect to pay $15.95 for a report with score. http://www.equifax.com

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