What is your minimum credit score requirement?
Lenders will check your credit scores when you are requesting to be pre-qualified or pre-approved for mortgage financing, from all three credit bureaus (also known as repositories) – Experian, Equifax, and TransUnion. Mortgage lenders will always use the middle of the three credit scores obtained to determine the credit score to be used on the loan application. If there are two borrowers, the lowest of the two middle credit scores will be used for the loan. If for some reason the borrower only has two credit scores reporting, the lower of the two scores will be used.
Minimum credit scores vary by the type of loan product you are requesting. Government loan programs such as FHA and VA mortgage products have a minimum credit score of 620, Conventional conforming and super conforming loan programs such as those offered by Fannie Mae and Freddie Mac have a minimum credit score of 620, while Jumbo loan products have a minimum credit score of 720. These minimum credit scores do vary over time and can move higher or lower depending on interest rates, delinquencies, and overall risk in the marketplace.
Not all lenders have the same minimum credit score requirements, so as always, continue to shop to determine the most suitable lender for your specific transaction. Also remember, the credit scores you obtain from 3rd party vendors such as credit card companies may not reflect your true credit scores, to get accurate scoring work with your preferred mortgage lender, or request your credit scores directly from Experian, Equifax, and TransUnion.
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- What steps should I take if I become a victim of identity theft?
- How can I obtain a free credit report?
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- What supporting documentation is required?
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- What is your rate lock policy?
- Are any fees collected when I lock?
- What if rates drop after I’ve locked?
- What happens if the loan process takes longer than my lock period?
- Can I choose a different program or rate after I’ve locked?
- Can I relock my rate if I cancel and reapply?
- If rates fall after I’ve locked, will you lower my rate?
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- Why do you charge a Lender Fee?
- Should I pay discount points?
- What is a rebate/credit?
- Can I prepay the loan without a penalty?
- How can you offer such low rates?
- Is there a fee or any obligation if I apply?