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Avega

Credit Score question

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I am wanting to try and get a pre-approval letter for a mortgage of 300k. What kind of credit is needed for that amount?? I know Debt to ratio and yearly income has a big part of it but on a credit stand point what is the lowest it will take to qualify?

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Each lender has their own specific criteria, but in general, approval isn't based on amount of loan vs. score. Either your score is good enough or it isn't, be it $100k, $300k or $500k. While FHA guidelines set the lower limit of approval at 580 (I believe), most lenders set the cut-off at 640 FICO. Having said that, your interest rate (and subsequent monthly payment) can vary significantly based on your score.

Bottom line, ask your lender to pull your credit to see where you stand. He/she can tell you if you even qualify, what your rate will be and, where applicable, how much you need to raise your score to get a better rate. 

Edit: one more thing. Only MyFICO can give you your actual "mortgage" score. Sites like Credit Karma are only a ballpark, and can be as much as 50 points off.

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