I'd like to purchase a home in the next 2-3 months after I move - returning to a previous employer - 2 years with this one, 9 years with the one I'm returning to, 16+ years in the same line of work.
Only active TL I have is a auto loan of $510, paid religiously for almost 2 years.
Income will be a base of 69K, plus at least 15K in on-call pay, plus overtime.
Pulled my 3 scores, and I know I've had some problems in the past - 601 EQ, 644TU, 658EX. Since then I've paid in full 4 collection accounts, and got PFD agreements for 3 of them. None were for huge amounts - the highest was a $204 medical bill that had never been submitted to insurance by the provider. All 3 PFD accounts promised to report to all 3, and I have written confirmation on the way.
What could I realistically expect in terms of an improvement in scores once the bureaus update? I've got a lender spamming me with "apply and lock" offers, but I don't want any hard pulls until everything updates.
Let me begin by saying I'm a Realtor. Your scores are NOT great given the new TIGHT mortgage standards, but you will see a decent improvement in the next 2-3 months.
I negotiated a settlement on behalf of my brother who had 2 collection accounts. His score in March of 2006 was in the low 600s. I think it was 614. I called the collection companies and told them I wanted to help settle my brother's debt but couldnt pay more than "X". They were reluctant to accept my proposed settlement amount but eventually accepted it. I ended up paying 50% of the owed amounts which totaled somewhere near $8K. So I paid about $4K and my brother paid me back. (The key is to call the collection agencies near month end when they have to meet their quotas. Also, have a relative call on your behalf -- who offers to settle your debt because they want to see you do 'the right thing". The collection agency cant negotiate with a relative as well as they could with the person that owes them money. After all, the relative has nothing to lose if they dont pay, right?)
So we settled those in March or April of 2006. By September of 2006 (just 5 months later), he was applying for a 0 down loan with a great rate, and a middle score of 715. BIG jump in a relatively short time.. but then again, he paid those off entirely --He's never been late on anything since and he can comfortably afford his home.