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What is more important? Credit Score or Down Payment.

I am curious as to what factor is more important when looking for a mortgage, my credit score or the amount I have available as a down payment by ashleyb939 from Miami, Florida. Dec 29th 2010 Reply


John A Soricelli Jr (John A Soricelli Jr)
#165 ranked lender in California - 151 contributions

This is a very good question. Frankly the two are directly related to each other and work on a sort of sliding scale as each changes. While every situation and borrower profile is unique, I will speak using some general rules. The better your credit profile (credit score, pay history, trade lines, etc.) the less amount you will have to put down. Conversely the worse your credit profile, the more you will have to put down. In addition, the amount of your down payment and your credit score will also have a direct impact on your interest rate. f you were looking for a good range where the most options and best rates are available it would be 690+ credit score 20% or more down payment. Realistically this is something you need to have a detailed conversation with a professional about. Please feel free to visit my website: www.ThinkJohnAJr.com for more information and my contact info.P.S. Your income to debit ratio is a MAJOR factor as well.

Dec 29th 2010
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Rich Constantine (rconstantine)
#395 ranked lender in California - 79 contributions

Both work together as everyone has mentioned. You should try to have a FICO above 640 for FHA/VA financing. Make sure you get a couple quotes to ensure your getting the best deal. Make sure you get fully qualified and approved for the loan amount, before seeing homes with a Realtor. Know your options. I lend in all States. I have low rates and fees. Hope this helps. RC

Feb 7th 2011
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Rick Pelleriti (RickPelleriti)
#362 ranked lender in California - 59 contributions

John gives a very good answer. To put it succinctly in another way, your credit score may be more important since if it is below 640, you will have a very difficult time getting a loan regardless of what you put down (unless you go for a 10% private money loan (hard money) which might require 40-50% down).There are many other underwriter guidelines that come into play, so best to speak with your mortgage professional and get clear.

Dec 29th 2010
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