What credit score is required to get a mortgage?
My fiancee and I are looking to get a mortgage soon, and will need approx. $150-$200K. Approx. what credit score do we need to have in order to be considered for a loan? We have good credit, but not 800 or anything.
- Anonymous1 decade agoFavorite Answer
A MIN. OF 600
- Anonymous1 decade ago
My mortgage company did not look at my score - neither do most big lenders.
They look at your report in detail, along with your employment history and salary.
I talked to my lender (the company paid for him - so I got special treatment). He gave my quite a bit of info. (this was a month before I applied for the loan).
- I had too much recent new cards opened less than 6 months. It was near christmas, and I was opening for the discounts.
- He said it was good that I paid off the balance off each month on my visa and mc. AND kept it below 30% of available credit.
- Having no debt allowed me apply for maximum monthly mortage amount. The debt (such as cars and personal loans) directly reduces the monthly amount you will qualify for.
Also, having one card open for a long time establishes a long credit history. Do not close up old cc accounts.
Put 20% down payment. If not you will pay that horribly costly PMI, that does not apply to principal or interest, its also not tax deductible.
Banks are sticking to monthly mortgage limits now. The montly amount can not be more than 35% of your income or 42% of your total debts. Pay off your debts first.
Make a 15 or a 30 year fixed. Do NOT let them trap you into these nasty adjustable 1 - 5 loans with options. They still are trying to rob people blind. Everyone knows rates will go up. With these risky things your interest amount can triple
- Anonymous1 decade ago
While FHA guide lines are not credit score driven, the lender who loans out the money will want to see a score of 580 and above. To get the best rate available you'll need a 620 mid score or higher.
You will need 3.5% of the purchase price for a down payment. Your debt to income ratio should be around 45% but I have seen FHA loans approved as high as 59% not that I would recommend you go that high.Source(s): I'm a mortgage professional
- andyLv 71 decade ago
In today's market, it is more what your debt to income ratio is and if you have a down payment plus closing costs than if you have a high credit score. Your mortgage banker may not even look at your credit score and reject you if you have too much debt or not enough of a down payment.
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- 1 decade ago
yikes in the uk 800 is a poor - fair!!!!!
strict as here and its about £800 a month for a 2 bed house with no dining room, shocking eh!!!!!!
no wonder englands on the brink of recession!!!!