shizuka Posted April 3, 2007 Report Share Posted April 3, 2007 Hi I'm wondering if anyone might have some advise for me. My husband and I found a house we'd like to buy and applied for a loan through Coldwell Banker. His credit is in the high 700s and mine averages to 729. My score is over 700 from all 3 bureaus. I have an old debt on my report that will be 7 years old in about 16 months. It is about $5300 from AMEX. I was told I'd need to pay off the debt before we could get a loan because a lien could be put on the house. Is that true? We both have good credit aside from the AMEX account. I thought that the Staute of Limitations of 4 years in Texas would protect us from any liens in Texas. Any help would be appreciated. Link to comment Share on other sites More sharing options...
shizuka Posted April 3, 2007 Author Report Share Posted April 3, 2007 My scores are:Equifax 705, Experian 764, TransUnion 718My husband's scores are:Equifax 789, Experian 768, TransUnion 773Thanks for any help! Link to comment Share on other sites More sharing options...
ybrew Posted April 4, 2007 Report Share Posted April 4, 2007 what percentage of your combined income does your husband make? Can you afford the house on his income alone?Can you get approved with just his scores? Link to comment Share on other sites More sharing options...
JessFolk Posted April 4, 2007 Report Share Posted April 4, 2007 is the debt still with amex or with a collect agency? If the latter, you might be able to get them off their report instead of paying them off. Otherwise if you pay the debt make sure its pay for delete. Link to comment Share on other sites More sharing options...
shizuka Posted April 4, 2007 Author Report Share Posted April 4, 2007 what percentage of your combined income does your husband make? Can you afford the house on his income alone?Can you get approved with just his scores?I actually make a little more and both incomes are needed for the loan.is the debt still with amex or with a collect agency? If the latter, you might be able to get them off their report instead of paying them off. Otherwise if you pay the debt make sure its pay for delete.It is with a collection agency, but they haven't sent me anything in over a year. I'm not sure who has it now. It shows up as a charge off on my credit report. It actually says it was charged off as of Aug 2000, but I thought it was Aug of 2001. I'm looking at my Experian report. I suppose it is possible that it has a different date on my other reports. I probably should request them.How would I be able to get it off my report since it is with collections?I don't see why we can't get a loan with that on my report. We were going to buy a home last year and it was a problem for us then. Link to comment Share on other sites More sharing options...
ybrew Posted April 4, 2007 Report Share Posted April 4, 2007 I actually make a little more and both incomes are needed for the loan.It is with a collection agency, but they haven't sent me anything in over a year. I'm not sure who has it now. It shows up as a charge off on my credit report. It actually says it was charged off as of Aug 2000, but I thought it was Aug of 2001. I'm looking at my Experian report. I suppose it is possible that it has a different date on my other reports. I probably should request them.How would I be able to get it off my report since it is with collections?I don't see why we can't get a loan with that on my report. We were going to buy a home last year and it was a problem for us then.You need to get your reports and find out when you were first late and never brought it back current. Sounds like you may only be a few months short of getting this removed from your reports as is.Personally, I'd recommend waiting it out if at all possible. Have you disputed it yet? Link to comment Share on other sites More sharing options...
firstsource Posted April 4, 2007 Report Share Posted April 4, 2007 Have your loan officer do some more work and offer you another program that does not have you pay off the old collection. You may have to pay a slightly higher rate for a while but the trade off should be worth it.Charles Link to comment Share on other sites More sharing options...
shizuka Posted April 5, 2007 Author Report Share Posted April 5, 2007 We'll just wait and see what happens. We have a back-up offer on a house w/ 4k earnest money. I don't know if the first offer will fall through, but we sure don't want to lose the earnest money if it falls through and then find out we can't get financing. If this house doesn't work out, I think we should quit looking until this debt falls off my credit. It's too stressful.Thanks for all the tips. Link to comment Share on other sites More sharing options...
amortgageman Posted April 5, 2007 Report Share Posted April 5, 2007 You should really listen to Charles. If that is the only item keeping you from a conforming loan, then you should be in good shape with another product in the nonconforming area. The interest rate will be a sight bit higher than conforming,but with your credit scores, the interest rate won't be much higher.You have $4,000 in earnest money that you stand to lose if you back out, so I would at least give a chance to see what kind of interest rate you can obtain. This is one of those areas where a broker hass a great advantage over a lender, because a broker has different lenders that will readily accept a loan like this. PM Charles and see what he may be able to come up with. Don't just roll over on this one. Link to comment Share on other sites More sharing options...
shizuka Posted April 5, 2007 Author Report Share Posted April 5, 2007 You should really listen to Charles. If that is the only item keeping you from a conforming loan, then you should be in good shape with another product in the nonconforming area. The interest rate will be a sight bit higher than conforming,but with your credit scores, the interest rate won't be much higher.You have $4,000 in earnest money that you stand to lose if you back out, so I would at least give a chance to see what kind of interest rate you can obtain. This is one of those areas where a broker hass a great advantage over a lender, because a broker has different lenders that will readily accept a loan like this. PM Charles and see what he may be able to come up with. Don't just roll over on this one.We won't lose the earnest money unless the first offer falls through and we don't back out during our option period. We will definitely do what we can to get the house if our contract is executed. We've been looking for an affordable mid-century modern house for about 3 years now and this is the first one that fits our requirements. We definitely want it.My main concern is that I don't want to pay the AMEX debt because it is my understanding that it would stay on my report another 7 years as a paid bad debt. I wanted to find out from you all if we could qualify for a loan w/o paying it and it sounds like it is possible. I'll contact Charles if our contract is executed. I don't want to waste anyone's time on a house that we might not get. The odds are against us, as the first offer came from an investor who is shattering our dreams Link to comment Share on other sites More sharing options...
Recommended Posts