Applying for Preapproved Mortgage?

[Anonymous]

Hi Everyone,

I am happy to report that since joining myFico in Nov 2011, my credit score alert has jumped from 550 to 625. 

I would like to apply for a mortgage loan, however should I wait?  I know that I PDF a medical collection that has not been reported in my reports.  I do have the letter sent from the CA indicting the credit bureau's delete the indicated medical collection.  I also have 2 paid in full medical collections that should be dropping off in Feb 2013 give or take the extra 180 days.

Everything finally seems to be in place.  My income is about 70K.  I do have student loans, along with 2 rebuilder credit cards which both has a tiny balance, along with $1,500 secured installment loan, which I opened back in Nov to show different credit lines.

Of course, I'm anxious and would like to apply but part of me is also telling me to wait...

Any feedback or insights would be greatly appreciated.

Thank you!

[JM-AM]

Congrats on the hard work building up your scores.

Based on the limited information you are approvable. You could wait a few more months and your scores may increase or you could just go ahead and talk to a LO or broker now.

[Anonymous]

Thank you JM-AM!

[JM-AM]

While we are still approving clients with 620 credit scores, most lenders are pushing for 640. 

Just make sure you discuss your scores with LO and or Broker to make sure your scores are qualifiable according to their requirements.

[Anonymous]

Is there anything else I can do to boost my score up?

I have GW my 1 late payment from about 1 yr ago but I have been unsuccessful...

Any other suggestions?

[JM-AM]

Since you have new credit you will also begin to gain points back as the accounts age. You will also gain a point here and there when the INQ stops counting against you which usually takes about a year.

Do you have balances on the new accounts you opened?

If you have a balance what is the credit limit on the cards?

[Anonymous]

For my installment loan, I pay about $126.00 a month.

My Cap 1 cc limit is $280 w/ a zero balance.
My 1st Premier cc limit is $300 w/ a $7.00 limit.

At this point, I dont want to apply until I know Im at a 640 or higher....

[Anonymous]

*balance

[JM-AM]

How long before installment loan is paid off?

[webhopper]

I encourage you to wait til baddies drop off in February... it will only cost you inquiries at this point to try for a preapproval and definately you don't want to rack up a lot of those! Make sure that your mortgage person knows that the installment loan is secured so that its payment is not included in your DTI as loans secured by your own funds are not supposed to be included in DTI.