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Old 06-05-2018, 07:49 AM
 
2 posts, read 2,076 times
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We are tying to buy a house with somewhat of a low credit (640). The bank has approve our mortgage for 5.75% down with conventional loan. What do you think about this rate! should we take the step and move forward or turn down the offer....?
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Old 06-05-2018, 08:46 AM
 
Location: Bergen County, NJ
4,017 posts, read 3,585,357 times
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You should shop around. You should still be able to get a rate below 5%. Check bankrate.com
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Old 06-05-2018, 12:48 PM
 
3,305 posts, read 3,850,271 times
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Get more than one offer. You've already pulled all the data you need, W2, savings, everything else, so getting two more offers today should be something you can do online.

That's the only way you're going to know if you can get something with a lower rate.
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Old 06-05-2018, 01:19 PM
 
11,337 posts, read 11,006,487 times
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5.75% is terrible, but your credit rating indicates a problem with paying bills. You might want to address that before buying a home. Home ownership is all about paying lots of bills, and paying them on time. You should have at least 6 months of emergency income in the bank before buying a home. Money that should not need to be touched or used for paying bills or closing on the house. If you don't have it, delay buying a home, set up a savings plan, bank the 6 months, and get your credit scores at least into the mid to upper 700s, after which you will be able to get a decent rate and peace of mind knowing you have plenty of saving to handle the emergencies that WILL COME.
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Old 06-05-2018, 06:00 PM
 
Location: NYC
20,550 posts, read 17,604,980 times
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With a sub 650 credit they shouldn't even approve you any mortgage. That's how we got into the housing crisis the last time. Trump is opening the flood gates to subprime again.
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Old 06-05-2018, 06:02 PM
 
4,285 posts, read 10,743,285 times
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Definitely get a handful of quotes. Once you get one mortgage quote, it doesn’t count against you if you get others within the next 60 days or so to comparasion shop (same with vehicles).

I am sure the relatively low credit score and only 5% down are jacking up the interest rate. Not sure if you could do better, but definitely worth finding out.
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Old 06-05-2018, 07:12 PM
 
Location: Bergen County, NJ
4,017 posts, read 3,585,357 times
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Quote:
Originally Posted by vision33r View Post
With a sub 650 credit they shouldn't even approve you any mortgage. That's how we got into the housing crisis the last time. Trump is opening the flood gates to subprime again.

You know nothing about the OP’s financial situation other than his credit score. The score alone does not give anything close to the entire picture.
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Old 06-05-2018, 07:31 PM
 
Location: Elsewhere
88,294 posts, read 84,292,537 times
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Quote:
Originally Posted by vision33r View Post
With a sub 650 credit they shouldn't even approve you any mortgage. That's how we got into the housing crisis the last time. Trump is opening the flood gates to subprime again.
I got my mortgage with a similar score in 2010. I pay 5.25%.

Now it's 801.
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Old 06-06-2018, 06:22 AM
 
1,616 posts, read 3,758,112 times
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Quote:
Originally Posted by Mightyqueen801 View Post
I got my mortgage with a similar score in 2010. I pay 5.25%.

Now it's 801.
well you should have refinanced by now
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Old 06-06-2018, 09:13 AM
 
Location: Elsewhere
88,294 posts, read 84,292,537 times
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Quote:
Originally Posted by sonofagunk View Post
well you should have refinanced by now
Hope to do that soon. LTV is 86% now. I just finished paying the loans for my dd's college, and so I'm paying additional principal and saving some to get there.

"Should have" isn"t helpful. My circumstances are not yours or the Cleaver family's.
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