Applying for Mortgage soon — questions about income/credit score

[Anonymous]

Thanks, Rookie08. I went ahead and moved my balance to reflect 2% utilization and will try and maintain that. 

I am going to take the advice of speaking to a Loan Officer in hopes they can shed some light on my collection items. 

Thanks again.

[Anonymous]

I am surprised that no one has asked Austinite if the apartment community debt has turned into a judgement. IMO, a judgement is more serious than a collection, because a judgment will often block a house loan.

October is plenty of time for you, but to be safe, you should check your credit reports to see if that debt turned into a judgement. You can check online in the county where you live to see. If it is a judgement, the LO will want to see that it has been dealt-with in some way. Since you already paid, you should be good. You should also use that attorney to squash it as much as possible (vacated?).

[For those in a similar situation, who have not paid, you should get it taken care of before your app for a mortgage, as your CR's will show an inquiry from a mortgage company, and if the collection agency sees that inquiry on a new pull, which they are probably authorized to do based on whatever agreement you signed, they will use it as leverage, the idea being that, if you have enough money for down payment on a house, you have enough money to pay a debt].

But getting back, Austinite, I would go straight to a credit union. They like people who fit your profile. Your bank, OTOH, might not as much.. Your long history with your bank will not help as much as you think. Also, credit unions are not-for-profit, whereas a bank is not, and if you feel that the bank is being cold, even predatory, well...your're right. The bank is often a middle-man, where they pass your app on to underwriter, and takes a cut; where as CU will often have all the bits and pieces of the process in-house. In fact, the person who takes your application will often have direct access to the underwriting department, and will help you move things along.

Also, do not underestimate your broker. A good broker will know the tricks of the trade, and will whack-away at issues that might come up.

You have an ace-in the hole that many of us do not have: You have high income, and high savings. That means that you can afford to put your "expert dogs"  to work:

1. credit repair company to dispute any items on your CR's that might be inaccurate
2. lawyer to deal with any judgments (look up debt lawyer)
3. Alliant Credit Union, as others have stated, to get a boost in scores for having installment loan reporting (yes, even you have time before October)
4. local credit union to baby-step you through the process (and actually care about you...really)
5. experienced broker to get you through the process

I just so happen to know a friend down there in Texas who just did all of this. I can dump her info to you. PM me if you are interested.

[Anonymous]

Hi IKNeadTheCredit,

It is merely a collection, not a judgment. In fact, I am currently living in said complex currently. Basically what happened was that I moved to a neighboring city for 6 months. I left on good terms and fullfilled my lease agreement. Upon my return, I signed another lease with the same complex. They said nothing about turning me into collections for a balance due.  After a month or so, it appeared on my credit and have been dealing with it since. As mentioned, I have proof of payment.

I am currently in discussions with an attoney to file a lawsuit against the complex and the collection agency. I simply wanted it off my record, but the attorneys believe it's worth 100's of thousands. I've never sued anyone and never had interest in doing so. But I am at wits end with the lack of aknowledgment of my payment. It's blatant fraud at this stage. We shall see. 

I certainly appreciate the advice regarding using a credit union. This is what I have also heard and will do. 

Thank you for the offer of a contact here in Texas. I'll send the PM. Much appreceated!