Mortgage Approval With 2 Collections ?

[exxo2]

Can anybody tell me how hard it will be for me to get approved for a mortgage with 2 collection accounts still on my report ? They are both in dispute right now and the dispute runs out on the 17th of this month.

One of them is for $281 (says it was placed on my credit in 2/2004 but DOLA is in 2000)

And the other is for $131 (says DOLA was in 2000 as well)

Will lenders tell me to beat it ? Will I have to do a ton of looking to find a lender that will approve me at a decent rate ?

I want a low rate. Low as possible.

I'm waiting til this dispute runs out to pull new FICO's but the last time I checked, they were around 629.

Currently I make about $70,000-90,000 per year.

Paying $1,000 per month in RENT is getting on my nerves. If it were a house, that would be fine. Although I'm sure the house I want will be more than that per month.

I want to get out of here immediately.

Thanks in advance.

[dm91497]

if they come back verified try working a pay for removal deal with the collectors. If not, some loans will let you in even if you have collections as long as they total $500 or less.

[morrow]

exxo, I had a few small med collections and was able to get my mortgage. I paid them before I got it though, not because I was told to, just because I didnt want them screwing me over at any point in the process. If you can pay em, pay em.

[Relocated]

I got approved with about 580 and 1 collection

6.1though in early 2003.

Also 50K down on 250K

Any help?

[allgone]

I got approved with about 580 and 1 collection

6.1though in early 2003.

Also 50K down on 250K

Any help?

I had 4 collection on my credit report and I was told that I could pay them at closing. That is if they are more then 2 years old.

The reason wht they do that is if you pay them now that will make your fico go down

[Ahntara]

Mortgage companies typically ignore anything labeled, or appearing to be, medical in nature. Knowing the state of modern American healthcare, they disregard those completely. If the collections were for some other type of account, but have not been updated in the last 24 months; it is possible they will ignore those as well. The worse case scenario is that the mortgage company forces you to pay the accounts at closing. You would be able to finance this into the mortgage loan itself. None of this would prevent you from obtaining mortgage financing. If it does, get another broker/lender.

Be aware that even though these accounts will continue to affect your credit score. This is why it is always a good idea to follow the previous advice of "if you can pay it, pay it". You are benefiting yourself in the long run.

[credithelp]

I have a friend that is in real estate and they told me the number one red flag when trying to get a mortgage is being behind. They like to see that anything you owe is either current which means you are making your payments on time, or have been paid off or settled.

A friend of mine just got a mortgage for a two story house with a nice yard. He couldnt believe he got it for 6.5 percent even though he had some charge offs(paid),quite a few settlements, and many late payments. Actually if he had put more money down he probably would have received an even lower rate. The reason he didnt have a big problem getting a mortgage is due to the fact that everything he messed up on was paid and he didnt legally owe anybody any money. He also had a perfect track record for the past two years which the mortgage company liked. It showed them that his financial problems were in the past. His credit scores really jumped up over the last two years of on time payments.

[J_Snow]

When we got our first mtg many years ago-they only cared that the accounts were paid... Even settled one (amex) for 50% and that didnt matter (showed as paid collection) as long as it was paid.

[firstsource]

Depending on a lot of factors, like how many open accounts you have that are not in collection status, how long you have been working: either at the same job or same type of job, etc, you will probably have no problem getting a loan.

I would first suggest that you go to www.myfico.com and have a tri-merge report run. Those scores are fairly accurate to what a mortgage broker will get, and then you can have a better idea of what you are going to be able to do. Anything over a 580 mid score and 3 or more tradelines that have over 24 months history, and you have a great chance of getting a 100% loan.

Don't give up before you start. Just because there are some jerks out there that don't respect you because of a few credit blemishes, does not mean that all of them are. Find someone that you like dealing with and put them to work.

Charles

[Guest KARENMW67]

Charles is very informative and very helpful. I'm from Michigan and I'm in the middle, closer to the end,of doing a refianace with him and his NEW company. Sorry, Charles , couldn't resist telling. . Well anyway, my situation was a tough one. Self employed, new job less than 2 years. Couldn't use DH ( Bread winner )because of fear of a judgement from old busineess might be floating around.Anyway, I feel that it is the best program for me and with his new company my rate dropped 1.65 %, to both our surprise .I was dealing with someone else and was calling Charles, because I just didn't feel like I was getting answers to those tough questions. So finally, I said, "Charles do you do Michigan?" He said you know what I've been asked about a loan in Royal Oak and well, why not? I went back to the person that I was dealing with in between her vacation and weekend off ( no one processing while she was gone,no good faith estimate ( 3 days after credit is pulled ,by law ). So as you see all I can say is that Charles is informed about a lot and if he can't answer, I'm sure he'd research before giving an answer.So if anyone could help you with your purchase ,it's him. Don't forget to see he notes up top about mean questions to ask your loan officer.By the way had my good faith estimate in 2 days.