What is an average credit score to be able to get a good home loan?

Public Comments

1. I WOULD GUESS 700 IS ABOUT THE NUMBER. AMOUNT OF INDEBTEDNESS AND INCOME ARE ALSO LARGE FACTORS.
2. Hello, your credit score is just one piece of the puzzle in qualifying for a GOOD home loan... you need to take into account LTV(loan to value ratio), income, and years at current employer, and also DTI (debt to income ratio), assets, etc... Now a rule of thumb is that 620 mid score (middle score of the 3 credit bureau's)..will qualify you for a conforming loan, if you meet all other guidelines.. Are you looking to purchase a home? If so, do you have money for a down payment? That will play a huge role in what you qualify for as well... What i suggest to you is to speak with a professional and get a real ACCURATE quote as to what you specifically qualify for... Without looking at all qualifying factors, the credit score is really irrelevant to tell you what you qualify for..(there are to many other thing to take into account) Your best bet is to talk with someone that has a portfolio of investors they work with. There are a couple reasons i suggest that: 1. If a loan officer can shop your loan to multiple lenders they are bound to find one or more willing tho lend to you. By looking at multiple options and programs you will be sure to find the lowest costs and rates... 2. If you on your own call multiple banks to see what you qualify for, EACH AND EVERY LENDER will HAVE to pull a seperate credit report. The more times it is pulled the worse your credit gets. Now, when you work with a loan officer that can shop among their investors, they only have to pull one credit report, and use that copy to shop mortgage lenders for you.. So not only do you keep your credit score where it is, you dont have to worry about any of the busy work..you let the loan officer do it for you.. The most important thing to realize is that I as the loan officer with multiple investors to work with, am fully willing to keep shopping to different companies to find the best program for your needs. There are many mortgage companies out there, all having different things to offer. Fortunately for you, i can find out which one wants to lend to you at the lowesr rates and fees. My name is Jason Fry, and I am a loan officer with Providential Bancorp, a nationwide mortgage lender. I'd be happy to assist you in purchasing a home, or at least be able to let you know exactly what YOU QUALIFY FOR. You can then make a more informed, and educated decision whether it would be the right move for you. Feel free to give me a call at 312-264-6448, or you can email me at Jasonf@providential.com. Thank You, Jason Fry Providential Bancorp 312-264-6448
3. Hi myproblem, Two types of loan in regards to credit. 1. Conforming or also known as Prime. 2. Non-conforming or also known as sub-prime Conforming is a loan with much better rates. To go Fannie Mae or Freddie Mac conforming, a mid credit score of 620 or higher is usually needed. Mid Score = is the middle out of your three credit scores. Good Luck, ~Trey
4. You have received alot of good information - are you confused yet? Take a deep breath. There are other factors to consider, besides credit. Medical Bills are Over looked by underwriting (since medical is a un-forseen event), where as credit cards, are looked at (since you purchased items on a credit card.) Also, Job time of 2 years, Rental history for 2 years is looked at. What collections & judgements are on your credit report. On a purchase, some collections may not have to be paid off. Judgements may need to be paid off - depends on the Lender and Their Underwriter. All of these are taken in as a factor on getting a home loan. Credit can be worked on, by adding alternative credit. If you are paying regularly on a cell phone, auto insurance, rent, etc - these are called alternative credit.. If your credit score is 500 or higher, anything is workable, with a seller second - etc the higher the credit score the better. Lenders look at the middle score...of the 3 scores. If you only have 1 score or 2 scores (have seen it), it is still workable....but unless a lender sees the whole picture - credit - income - job time, etc - than you will not have a "true" picture of what you can afford - Hope this helps - There are also Government programs out there, but they too are looking for job time, etc.....They are not so much looking a credit - but the other factors are taken into consideration. With a government loan - collections and judgements will have to be paid (most ppl do not know that) but for FHA it is true.. If your credit is low (500 - 580), than you will be going SUB-Prime, and any amount over 80 percent does not have MI - There are alot of companies I underwrite for that does NOT charge MI - normally the rate is slightly higher, by a .125 to the rate. Say you got qualified sub-prime, and your rate was 7.99 at par (Par, means that is what rate the lender quotes you, with no addon's to the rate for the lender to make pts on the back - some Lo"s add pts on the rate to make their money - instead of charging it up front). The 7.99 does not have MI included. Conforming rates are in the 6's still, (so you can see the difference). Going conforming, anything over 80 percelt loan to value (LTV) will have MI included, unless you want to add the MI into the rate, which can be done. Talk with your lender. FHA loans also have MI included. There are alot of factors involved. Decide on how much you want to spend, if you want to escrow the taxes and insurance. Say the taxes are 1200 a YR and insurance 800 a year (just an estimate, ok) That is 2,000 a year divided by 12 = 166.66 If you paid 1,000 a month now - (166.66) your P/I Principle and Interest would be 833.34. Now you decided on the price range you are looking into. If you have great credit, a 1 loan at 130,000 at a rate of 7 percent over a 30 year time would be 864.89 - This is just a estimate - ok - It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thru a realitor, and the seller has to pay the realitor their fee which runs from 3-6 percent of the selling price, and you ask for 3-5 percent toward closing cost -assistance) Follow me so far?? Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down. Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). This will tell you the up-front closing cost (etc) associated with your loan. This is a estimate only - not the final - but it does help you figure things out. Good Luck, and if I can help in any way check out my web site, for links to all the credit reporting agency's and other useful information. I have many programs available, and lenders to choose from - to help you get the best rate available. From USDA Rural, Government loans, Conforming, Sup-Prime, Investment, Commercial just to name a few.