Advice please! Apply now or wait and try for EE?

Anonymous · ‎02-20-2016

I appreciate any help!

I am very close to applying for my first mortgage which is so exciting. I have three old collections which are set to fall off this year. Two are paid and should fall off between March and May and one is not paid (it is incorrect which is why) and should fall off by June at the latest. I know typically EE are only granted from two of the three credit bureaus. So I guess my question is... If I will not be able to get all accounts removed should I still try or go ahead and apply? I've heard when accounts are close to falling off its not as much of an impact score wise when they are so old.
My normal fico scores and mortgage scores are above 580 and 620, hopefully near if not over 640 and I am trying for FHA
Please help as I need to act fast.

Danielle

Anonymous · ‎02-20-2016

When collections come off, it does make a difference. Especially if they are your only negative items. Any collection showing will impact your score as long it is being reported. If you cannot get them excluded early, then it would probably be most prudent to wait a small while longer. TU will typically exclude items up to 6 months early, the other two bureaus are hit and miss but usually will play ball around 1 -3 months early depending on posts from other forum members. If you are this close, you should try for the EE and then pull your mortgage scores to see where you stand once the report is updated.

Anonymous · ‎02-21-2016

@Anonymous wrote:
I appreciate any help!

I am very close to applying for my first mortgage which is so exciting. I have three old collections which are set to fall off this year. Two are paid and should fall off between March and May and one is not paid (it is incorrect which is why) and should fall off by June at the latest. I know typically EE are only granted from two of the three credit bureaus. So I guess my question is... If I will not be able to get all accounts removed should I still try or go ahead and apply? I've heard when accounts are close to falling off its not as much of an impact score wise when they are so old.
My normal fico scores and mortgage scores are above 580 and 620, hopefully near if not over 640 and I am trying for FHA
Please help as I need to act fast.

Danielle

I would go for the EE before I apped. Remember apping for the mortgage will cost you a few points which could leave you below the 640 range. EE on TU and Experian is very possible for those COs you mentioned. I'd be calling both, first thing tomorrow. It sounds like you know this already,but the one score in range isn't going to do it because morgage companies use your middle score which means you'll need to have at least two scores higher than the 640 range. Hopefully someone else can answer you specificly in regards to collections, but I can tell you that, 2 months from fall off date my EX score was depressed by 63 points. 7 months from fall off date TU went up 70+ when I got EE. I'm still waiting on EQ, but it was not my lowest before I got the EE so I'm hoping for atleast another 60 + points. My LO didn't even ask about the paid judgement still on my EQ because it was my lowest score and therefore not a factor.