Best Answer: Your credit score is ok. And you will be able to get a mortgage loan, but not with the best mortgage rate possible.
It’s great you are trying to save up for a down payment because most lenders are now requiring an average of 27 percent down, according to the Mortgage Bankers Association of America. And even though you only have to put down 3.5%-5% for an FHA loan, they are raising fees to those with less cash to put down.
So make sure you save as much money as possible, not just for a down payment. Save enough to cover three months of your household expenses and factor in closing costs which may add 3 to 5 percent of the cost of the house as well. Your financial situation should be as stable as possible before you apply
for a mortgage loan.
You also might want to get prequalified for a loan. Prequalification gives you a starting place, helping you sort out whether you can possibly get a mortgage loan. It is fast and easy to do. There is no point in going through the pre-approval process if you don’t have the income, assets or credit score to move forward. However if you can get prequalified for a loan, you should go through the pre-approval process next.
In summation, your first steps to getting a mortgage should be to raise your credit score, a score of 720 or higher should be your goal, to save up for a down payment and other expenses, and to prequalify for a loan.
To see if you can prequalify for a loan you can visit MortgageMatch.com and use the PreQual Plus feature (https://www.mortgagematch.com/prequalify.