Question
Georgia Mortgage question...please help- Lenders and Realtors.?
If my credit score is Low can I get a home loan? See, I got a pre-approval letter for a home loan and was...quite surprised. 2 years ago a lender said I couldn't finance a pack of pencils. So How did I get a pre-approval letter? I don't know my credit score but 2 years ago it was 554 and I don't use my credit at all. I don't have any credit cards or loans. I just sat on my credit and did nothing. So Im confused -does that mean my credit score is up since I got a pre-approval letter? I was told by a Realtor that I cant finance a home with a score less than 670. The lender has also verbally told me that with a USDA loan in Georgia at the current interest rates my payments would be below what Im paying for rent 895, on a 119, 000 home with 100% financing and no cash down. But I was told by a mortgage broker that the interest rate would increase my monthly payment depending on my credit score. Please help....I really want this house but Im afraid to toss up ernest money and loose it if i back out because I cant afford the monthly mortgage -or that they will change there minds and say I cant finance a pack of pencils. Ive been looking for 6 weeks knowing I had an approval letter but only recently became more concerned about my credit score because of they info i was told about increase in payment if my score was low.
1 month ago - 2 answers
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Chosen by Asker
Your pre-approval depends on how you got it. If it is a letter that came to you in the mail from a mortgage lender, this is not a pre-approval this is an advertisement gimmick used by mortgage brokers/bankers with the hope of getting you to apply for a mortgage loan. If this is the case you might contact these individuals and inquire of their requirements for a pre-approval with their mortgage company. If you went to or contacted a mortgage company with the intent of getting pre-approved for a mortgage loan and you provided this mortgage company with proof of income, bank statements that showed the proper reserves, the mortgage company was able to obtain a credit report and other documents that would allow them to obtain a pre-approval letter that you are requesting. Then this letter of pre-approval is good, because you have spoken with the mortgage consultants that issued the pre-approval letter. Some government agencies such as FHA and VA that underwrite mortgage loans are not as stringent as those of the conventional lenders, therefore you credit score might meet their requirements for a pre-approval for you to purchase a home. I hope this has been of some benefit to you, good luck. "FIGHT ON"
1 month ago
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Other Answers
Because pre approval letters are nothing but advertising tools to get you involved; maybe to pay some fees.
by wizjp- 1 month ago