With our local media acutely focused on the hazards of shopping for Texas Home Loans, there has never been a better time to protect your interests through educating yourself on the loan process. Below is Part 1 of our, “What you should know before you start the loan process” series.

 What is? 

1. Your Fico Score - The Middle Score of all three credit companies is used to determine the rate you qualify for.  Example: Scores from the three credit Agencies (680, 729. and 710) 710 is the middle score and will be used to determine your credit eligibility for a loan. If your spouse is included in loan the lowest Mid-Score between both borrowers will be used. Lenders usually like your mid-score to be at least a 640. As a general rule of thumb; If your score is between 640 & 680 your down payment would need to be at least 5 to 10%.  If your score is 700 or above you will need only need a 3% down payment. Texas Home Loans are available through many different lenders and product guidelines change often.                                                      

Filed under: Home Mortgages