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Can I get approved for a mortgage if my score is 627 in Pasadena, TX?

I have saved enough money to put down 20% on a home for $150,000 but I keep hearing that since we filed bankruptcy in 2008 and we have a score of 627 we're not going to get approved. We were hoping to apply for a mortgage next month and start looking for houses, but do we even have a chance?
  • June 09 - Pasadena
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Answers (6)

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  • June 14
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Luckily, credit scores at your level are definitely acceptable for most loan options. Lenders like myself can go as low as 580-620 depending on what type of loan you are seeking. With your current scores you have several lending options available to you such as FHA, conventional, VA, USDA, etc. There are other financial factors that would need to be analyzed including your income, expenses, assets, liabilities, debt, employment, down payment, as well as credit scores. If all of these factors are in place then you should be good to go. So the best thing for you to do is to speak with a knowledgeable lender to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out. Good luck!
  • June 09
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You definitely have a chance, the bankruptcy itself, wouldn't disqualify you as you are past the "waiting period" of 4 years. The best advice that I can give you is to contact a mortgage professional to review your credit history and debt to income ratio, also I see you mentioned that you have saved enough for 20% down, but if you are not able to get approved for a conventional loan, you could also look at going FHA which is a lot more forgiving of recent credit history, with the idea of working on your credit and refinancing in a year or two to get rid of the mortgage insurance the company I work for Freedom Mortgage has several branches in Texas, and can work with credit scores as low as 580 I would suggest giving them a call
  • June 09
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4 years from date of BK discharge is guideline for a conventional loan. Your credit payment history after date of BK is important, and any negative payments will impact approval. A 627 credit score could be within acceptable range, but it could also indicate some issues since BK. Best option would be to have a lender review your credit report, income, job history, etc. Would suggest TX lender, and you can contact me thru my Profile after viewing Reviews for assistance.
  • June 09
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Bankruptcy usually stays on your records for 7 years; but it does depend on the type of bankruptcy and who is financing the loan.  In any case, you are close, so you should be speaking with an experienced qualified loan officer licensed in your State.
  • June 09
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You need to speak to a mortgage professional.  The credit score by itself is not the only thing taken into consideration when you get approved for a loan.  Debts, length in current employment and other things depending on your personal situation.

Hats off to you for saving at least 20% for a home.  It shows financial responsibility.

I recommend that you speak to one of the best mortgage professionals in the industry.  He has been wonderful to my clients and I'm sure he can help you with the right answers.
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Good luck,

Naima
  • June 09
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