One of the biggest changes in the Florida mortgage arena is the way credit scores have determined interest rates.  For years it really didn’t make a difference if your credit scores were in the 660 range or the 800 range.  Of course, the higher the credit score the easier it was to obtain a conventional Fannie Mae or Freddie Mac mortgage.

Today, due to the credit squeeze and mortgage meltdown of 2007 and well 2008, credit scores do matter.  Here is a great example with a previous Florida home buyer wishing to put 20% down on their new Florida home.  30 year fixed interest rates were available at 6.375% with no discount points and no origination fees.  Pretty typical, however, when we reviewed their qualifying credit scores we learned their score was only 687.  Fannie Mae, has established credit score based pricing for banks and lenders to follow.  This simply means our client will receive a fixed rate adjustment of.125% for having a credit score less than 720.

This makes quoting an interest rate and providing upfront Good Faith Estimates much more difficult.  Make sure you know your credit score prior to seeking Good Faith Estimates.  For more information on your credit scores, Florida mortgages, or simply speaking with a Florida mortgage professional, call our office at 888-399-0520.

Trackback URI | Comments RSS