Florida Mortgage : Learning Center

For many years credit scores played a smaller role in mortgage risk assessment.  In fact, there was usually no difference in the fixed mortgage rate obtained for a home buyers credit score of 640 vs. 740.  But ever since Fannie Mae and Freddie Mac introduced credit risk based pricing; credit scores do make a difference.

When clients contact our office and mention they have excellent credit; we inform them that “excellent” is usually defined as credit scores at or above 740.  With a credit score that high, there is no price adjustment for credit score risk.  In other words, you should be able to receive the lowest fixed mortgage rate available from any given mortgage lender or bank.

Florida home buyers seeking to purchase a new primary home, 2nd home or vacation home; can expect to receive today’s very low fixed mortgage rates.  The higher your credit score; the lower your Florida mortgage fixed rate.  For immediate assistance with our accurate Good Faith Estimates; please contact our office at 888.399.0520.

Many first time home buyers are excited and serious when making the largest purchase of their lives.  In today’s volatile economy; buying your dream home does require a little more attention to detail and decisiveness.  When seeking your first Florida mortgage please make sure you are working with a seasoned Florida Mortgage Professional and learn what not to do.

Whether you consider some of the best first time home buyer programs such as; the VA Home Loan, the USDA Residential Loan, FHA government insured loans or even conventional Fannie Mae or Freddie Mac fixed rate mortgages; ask questions and avoid mistakes. One of the biggest mistakes occurs when new Florida Mortgage Professionals fail to educate first time home buyers with regards to credit use while processing their mortgage.

After your Florida mortgage has been approved or at least pre-approved; please hold off from opening any new credit lines.  These include buying or leasing a new or used car, opening a new credit card with little or no interest (it doesn’t matter), or increasing the debts already owed (charging more on current credit cards).

These serious debt changes can affect your Florida mortgage approval by temporarily lowering your credit FICO scores, or increasing your qualifying debt ratios.  And with today’s demanding mortgage underwriting guidelines; every effort counts while moving towards your Florida dream home ownership.

If you have questions about buying your first home with any one of these Florida mortgages please contact our office at 888.399.0520 and ask for me, Stephen Thaggard.

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.