pclonghi

Question for the mortgage guys

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Im going to talk to a broker in my state monday. My question is that I have 4 Judgments on my CR and the last time i tried to talk to someone they said pay off the judgments first. I spoke to a woman the other day and she said no dont pay them until closing because it will lower your score if you do it before.

what do yall think??

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Are the judgments still owing and if so, are you on a payment plan with them? If not, then they will most likely be required to be paid as a condition of the loan. Depending on your situation would determine if you should pay them now, before an underwriter would see your loan, or pay them as part of the loan approval after an underwriter would see your loan.

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Uhhh....ya that was my question. If im trying to get an FHA loan do you think I should just pay them or wait till I close?? I have the cash to pay now but im concerened that the FICO will drop when I pay.

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When your Loan Officer submits your loan to the investor underwriter (person that approves your loan) They will require that you pay off your judgments, and possibly if you have collections they may require that those be paid.

Yes, Don't do any of this paying off until closing. Your assets that you supplied to the LO will show that you have the funds to pay from your own money or a family gift will also work.

Charles

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Sorry, had to leave for a few days.

A family gift is where a family member (Parents/grandparents/siblings/children only) gives you some money to purchase your home.

The controversy in our business is that this seems to favor the people from well to do families, it stops the sellers from helping people to purchase their home, but not the people from families that have money.

I thought to help the housing crisis that FHA would be forced into allowing the Down Payment Assistance program to be used again, but does not seem that it is going to happen soon.

Please write an email to your Senators & representative asking them to get one of the new proposed laws passed, so the "not rich" can purchase a home.

Charles

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