Should I get pre approval first?
My credit score is 591 and I plan to apply for an FHA loan soon. I have no late payments on my debts for the past 2 years with $7k savings that I plan to use on closing costs and other house expenses. I am going for a 3% down payment and I want to know when I should start applying for a pre-approval? Do I apply before I go house hunting? by danny289 from Beverly Hills, Florida. Dec 29th 2021
Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,431 contributions
Absolutely, DO NOT start shopping until you have been approved for a loan. You should know that with a score below600 is much more difficult to get approved and the rates of higher by as much as 1-2% from what you would be eligible for with a 640 score. FHA requires a minimum down payment of 3.5% and PMI is mandatory for the life of the loan. With now late payments in the last 2 years, there is something else in your credit profile that is dragging your score down. We work with a lot of folks that are in similar straights and we get most of them financed into a good home loan. Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Certified Mortgage Advisor and Certified by The National Association of Mortgage Professionals as a Certified Veterans Lending Specialist.Licensed in AZ, CA, GA, IL, MO, OR & WA... In fact, NEXA is licensed in all states except MA and NY so give us a call. ~ www.ApplyYes.com 480-889-9000 - OR - 480-695-9300
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