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my score is about 580....what will be needed for approval?
My husband and I will be applying for a first time home buyers loan. I have no idea who to talk to, aside from a realator, or what to expect.

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Focus on your credit score...

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Generally speaking, mortgage lenders will require a minimum FICO score of 620 to be considered for a loan.  Keep in mind that that you will have 3 different FICO scores, one from each of the major reporting bureaus (TransUnion, Experian, and Equifax).  The lender likely uses only one of them to pull your score. 

Credit Karma does not provide you with a FICO score, they provide you with a TransUnion calculated score (along with Vantage and insurance scores).  The score provided by Credit Karma is a good barometer of how healthy your credit is, but that score will not match the FICO scoring.  As a rule of thumb, I have found that the Credit Karma scoring is a little bit more optimistic compared to FICO scores.

I would start by paying for an actual FICO score so you know where you stand.  Then you can start shopping around for a Mortgage Broker that will talk to you about your specific situation and let you know what possibilities are out there.    Be very wary of any company who wants money up front to review your credit and give you an assessment of whether or not you can qualify for a loan.  Run away from anyone that want thousands in advance and promise that they can finance anyone.  Be prepared that with a score under 620, if you qualify, you'll be facing much higer rates than the ones you see advertised on TV and in the paper.

Your best bet is to wait for a while and work on improving your credit score and saving more for the down payment.  Once you can pull a 620 FICO score, you will have a lot of lenders to choose from with more favorable rates.

Good luck!

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Same boat!

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My husbands middle score is 680, but he does not have the income to put the loan in his name only. My middle score is 580 and we are being hit with a 5.25% interest rate, 1.5% closing cost penalty and 1.5% down payment penalty for 3 year old medical bills. We can still do it, but only because we are looking at a $55,000 purchase price. I am going to use part of our savings to paydown my credit cards in the next few days to less than 30% usage, which should put me back over 600 wheen the billing cycle ends on the 11th, and then call the lender back. if I still dont like what I hear then we will go shopping for a new mortgage company.

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