Author Topic: What are the chances of being approved for a mortgage loan?  (Read 929 times)

MarkSmith09

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What are the chances of being approved for a mortgage loan?
« on: January 25, 2018, 12:38:02 AM »
Hi, I want to ask a question,
What are the chances of being approved for a mortgage loan when your credit is perfect except for one auto repossession?

Rich on Money

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Re: What are the chances of being approved for a mortgage loan?
« Reply #1 on: January 25, 2018, 04:02:06 AM »
You'll probably get a loan somewhere, but not at the lowest rates.  It'll depend on job income, price of house, appraisal, how long you've been working, and many other things.   Butt I wouldn't call that perfect credit.


MarkSmith09

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Re: What are the chances of being approved for a mortgage loan?
« Reply #2 on: January 25, 2018, 04:15:39 AM »
Thank you for answering my question.

nereo

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Re: What are the chances of being approved for a mortgage loan?
« Reply #3 on: January 25, 2018, 06:15:47 AM »
What is your credit score and how long ago was the auto-repossession?
What is your annual income, assets, working history (any recent unemployment?)?

As RoM said - you’ll probably get a loan somewhere, but perhaps not for the lowest rates.
If large banks aren’t willing to work with yo u I’d try local credit unions; they are better able to ‘buck’ the formula and make individual assessments.
"Do not confuse complexity with superiority"

August26th

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Re: What are the chances of being approved for a mortgage loan?
« Reply #4 on: January 25, 2018, 01:26:26 PM »
Hi - many factors to consider and more info would be needed to give the best advice. However, there is no such thing as “perfect credit, except ______.”

I would guess your chances for approval (as you asked in your original question) are pretty high based on the basic info you provided. But without the other factors to consider, it’s impossible to say.

Hope that helps a smidge!

YttriumNitrate

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Re: What are the chances of being approved for a mortgage loan?
« Reply #5 on: January 26, 2018, 07:44:33 AM »
Here's a mortgage rate sheet that will help you see things from the bank's perspective:

https://secure.53.com/loans/app/wholesalerates?requestType=getRatesheetData&ratesheetId=27

Basically, if your credit score is below 620 for a conforming loan (under ~$425) or below 700 for a jumbo loan (more than $425) then the bank does not want to deal with you. Also, if your credit score is below 740/800, then you are going to be charged more, and how much you will be charged is dependent on A) your credit score and B) the size of your down payment.

ender

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Re: What are the chances of being approved for a mortgage loan?
« Reply #6 on: January 26, 2018, 07:46:47 AM »
btw i'm not sure if your "location" is accurate or not but you've listed an address

Cpa Cat

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Re: What are the chances of being approved for a mortgage loan?
« Reply #7 on: January 26, 2018, 07:47:18 AM »
Remember that it doesn't really cost you anything to talk to a mortgage broker and get them to run numbers for you.

midwesterner1982

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Re: What are the chances of being approved for a mortgage loan?
« Reply #8 on: February 04, 2018, 11:52:18 PM »
I agree that meeting with a Mortgage Broker is a great next step.  Their job is to help you qualify for the best loan.
I'd also meet with your local small bank or credit union if you have one.  A smaller bank may be more likely to keep a performing loan instead of selling to Fannie/Freddie.  Also, a bank that has a personal relationship with you, knows your family, etc. might be willing to overlook one blip in your history, especially if you can tell a good story about what caused it (medical bills, job loss, etc).  A fannie/freddie type supplier is only going to check boxes on the forms to see if you qualify so you won't get a chance to tell your story.
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MarkSmith09

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Re: What are the chances of being approved for a mortgage loan?
« Reply #9 on: February 06, 2018, 03:50:21 AM »
What is your credit score and how long ago was the auto-repossession?
What is your annual income, assets, working history (any recent unemployment?)?

As RoM said - you’ll probably get a loan somewhere, but perhaps not for the lowest rates.
If large banks aren’t willing to work with yo u I’d try local credit unions; they are better able to ‘buck’ the formula and make individual assessments.

My credit score is 670, about 6 years ago was repo, Current annual income is about $80,000 and no recent unemployment.

nereo

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Re: What are the chances of being approved for a mortgage loan?
« Reply #10 on: February 06, 2018, 05:50:52 AM »
What is your credit score and how long ago was the auto-repossession?
What is your annual income, assets, working history (any recent unemployment?)?

As RoM said - you’ll probably get a loan somewhere, but perhaps not for the lowest rates.
If large banks aren’t willing to work with yo u I’d try local credit unions; they are better able to ‘buck’ the formula and make individual assessments.

My credit score is 670, about 6 years ago was repo, Current annual income is about $80,000 and no recent unemployment.
Based on that information you should be fine getting a mortgage loan - it just won’t be the lowest rate.  To repeat, a mortgage broker or local bank/credit union might be better able to look at your individual situation than the larger banks or Fannie/Freddie - where they just enter your numbers into a program and the risk-algorithm chooses your rate.
As I understand it most negative information is factored out after 7 years, so that repo won’t have a big impact after this year.

There’s a few other financial housekeeping steps that may boost your score another 10-40 points... run a credit check, pay down any other debt and keep your longest credit cards open. You might call your credit card company and ask for a modest increase in your credit limit which will help your score (marginally).
"Do not confuse complexity with superiority"

YttriumNitrate

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Re: What are the chances of being approved for a mortgage loan?
« Reply #11 on: February 06, 2018, 08:45:39 AM »
My credit score is 670, about 6 years ago was repo, Current annual income is about $80,000 and no recent unemployment.

Based on the rate sheets cited above, it looks like a 670 credit score you'll be paying 6.5% to 7% interest for an under $425k loan. It looks like getting your credit score above saves you a whopping 1% per hear.

NoStacheOhio

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Re: What are the chances of being approved for a mortgage loan?
« Reply #12 on: February 06, 2018, 09:00:22 AM »
Also, check to see if your employer has any deals with lenders. I got a 5% down/no PMI loan @ ~4% because of where I work.
The first step is acknowledging you have a problem, right?

https://forum.mrmoneymustache.com/journals/digging-out-of-a-hole/