Can you get a good mortgage rate with a FICO score of 733?

Answer 1

Congratulations. 733 is an excellent credit score and should allow you to obtain the absolute best interest rate on your mortgage.

A 733 FICO is about as good as it gets, you should without a doubt be able to get the best loan possible.

Loans are basically broken up into two categories, prime and sub-prime.

A prime borrower has to meet some basic criteria.

- A middle fico of at least 620

- No Mortgage lates for the last 24 months (if a refinance or if you owned property prior to a pruchase)

- NO Bankruptcy or credit counseling for 48 months.

- No charge offs or collections on their credit report.

- 3 months seasoned PITI reserves in any sort of savings account, checking or liquid asset. (PITI stands for Principle, Interest, taxes and Insurance. It's your overall monthly mortgage obligation. So whatever your payment will be, you will need 3 months worth in a seasoned account most banks at least 2 months of seasoning.)

- A Debt to Income ratio of 45%

- Some banks may require it to be an Owner Occupied property only but not all.

If you don't meet all the requirements you are a sub-prime borrower and fall into a completely different category.

Sub-prime borrowers will face higher rates, some may not be that much higher but that will depend on 3 aspects.

1- credit 2- Income 3- equity

Your credit will determine the rate, as well as your LTV (Loan To Value, in a refinance it is current mortgage balance divided by current market value. In a purchase it always goes off the purchase price no matter what the appraised value is, so a home sold for 100,000 and you put down 10%, the LTV is 90%)