Comment from jamie598
Time July 27, 2009 at 1:51 am

Obviously the higher your score, the lower the rate of interest you can obtain. According to the My Fico website, you are looking at an interest rate of 9.249% with a credit score of 580-619. If you score goes up to 620-659, then the rate decreases to 7.08%. So I wouldn’t talk to a lender until you get your score up to 620.
The rate keeps going down incrementally the higher your score – those with near perfect credit can get a rate of 5.764%.
I’m curious about your statement about being able to “get the 20% down”. How are you going to get the 20% down? The source of those funds is important to the lender. Basically you can’t borrow that money from anyone. If a family member is going to give you that money, they will have to sign a statement indicating that the money is not a loan and will not have to be paid back.

Comment from jlf
Time July 27, 2009 at 3:04 am

There is no one answer. Talk to a lender first to see what you will qualify for. Different lenders have different underwriting requirements.

Comment from GVD
Time July 27, 2009 at 5:36 am

First thing, you should speak with a mortgage broker before you speak with a real estate agent. Get pre-approved and know what you can actually afford before you start getting your appetite wet on all the stuff you can’t.
With a 600 credit score and 20% down you won’t have a problem finding mortgage financing, assuming you fit the other criteria, such as income and debt ratio to name just a couple.