Home Buying in 91101>Question Details

Brian Tran, Home Buyer in Los Angeles, CA

700 is considered average, will this look good with lenders in 2012?

Asked by Brian Tran, Los Angeles, CA Thu May 31, 2012

I have checked my credit but I want the most competitive rate, are the lenders fighting for my mortage or is this still a lenders' market?

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6
Deborah Garvin’s answer
BEST ANSWER
Brian,

First: The credit scores a individual can pull are not the same scores that a mortgage professional receives when requesting a three bureau merge for the purpose of a mortgage application. So, it would be impossible to know if your score will remain the same. Second, mortgage lenders use the middle score of three scores....therefore, knowing you have a 700 score would not guarantee anything specific for rates/pricing. Your other two scores may be higher!

There are any number of facts that will affect your pricing on a mortgage loan, including (but not limited to): Credit score, reserves, type of property, location of the property...and the list goes on.

I am not sure I think it is "still a lender's market"; however, I see very few transactions that are the "slam dunk" that the consumer was thinking from the outside looking in. A few years back, fogging a mirror would get you a mortgage. Today it takes documentation, perserverence and the assistance of a highly educated and experienced mortgage professional.

I have talked with a lot of consumers who lost a great opportunity because they were more focused on the "cheapest" deal instead of focusing on the entire process. I don't promise any consumer I will have the lowest rate in town...I do promise I can close the transaction if we start it. And, I think you will find that is the case with most mortgage professionals.

Lastly, for the record, 700 is a pretty good credit score. Though some lenders/products/programs require higher...,not just for the best rate, but to qualify at all. Most programs/products will do down to 640 scores and a few to 620. Hope this info helps you! Best of luck!
3 votes Thank Flag Link Thu May 31, 2012
Brian,

Short answer is that, with a small variance for the loan type, you should be able to get very close to the best rates available with a 700 credit score. There are some instances where combined factors could make your rate noticeably worse than if you had, say, a 780, but again, without going into too much detail, your 700 should still keep you in good rate standing.

If you have questions or if I can help, please let me know.

Rob Spinosa
rspinosa@rpm-mtg.com
1 vote Thank Flag Link Thu May 31, 2012
They will also look at your financials, loan to value and what type and condition of home you will buy. Lastly it depends what type of mortgage you are getting, rates will be similar with all banks, points may differ but what is important is how well you are serviced, saving a couple of dollars to sacrafice service could lead to a loan denial or higher costs in the end.
Web Reference: http://www.ScottSellsNH.com
1 vote Thank Flag Link Thu May 31, 2012
A lot of people would like to have a 700 score.
But the Lenders will never admit that they need your business; well, probably never.
There is a lot of room between 700 and 850.
1 vote Thank Flag Link Thu May 31, 2012
700 score is great compared to the 640 minimum required median score. You have excellent answers below.
Consult a local lender to seek your options.

Best.

Maria
0 votes Thank Flag Link Fri Sep 14, 2012
After the bubble, I thought lenders are more demanding and tougher on the requirements than before, that's why I'm wondering if 700 is enough or not. Thanks!
0 votes Thank Flag Link Thu May 31, 2012
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