Approval but...

[pedsaktix]

I received a conditional approval today.

UW wants my credit card statement from a certain date..  but my problem is that I have a transaction in there showing I paid a collection agency, meaning I was late on one of my bills.. (electric bill $400).  I'm worried that when UW sees it will be the deciding factor if I'll get the loan or not..   

This come about because I moved out of my apartment to my relatives house.. When I informed the electric company that I was moving and told them to discontinue my line, I was told to just wait for the final bill in the mail.. I told them where I was moving into but I never received the bill in the mail..  Then when I called it was too late and my account was sent to collection.. I paid it the same day.

I don't know what to do..  I'm almost certain that when get see this transaction it will be the end of this loan process.. though this does not reflect on my credit history but I'm really worried..  Any advice?...   I told this to someone close to me and I was advised to just edit my bank statement and be done with it..  I don't think I'll be doing that.

[Gunnar419]

If they question it, just explain exactly as you did here. That sort of thing is common and after all, you're talking about a PAID collection, not an unpaid debt.

It may not come up at all, though.

[IOBA]

If it were me, I might consider blacking out the charges.  Really, it's none of their business. 

They are PROBABLY - not for sure, but probably - looking at balances, how much paid, etc, not for a "gotcha!"

[pedsaktix]

I really hope this would be a non issue.. and since it's not reflecting in my credit report, it shouldn't be an issue but I also understand if they said no.. although it'll be hard to swallow it..

I don't know if it's legal to black it out, out of my statement and it might come back and bite my behind off down the road so... I'm not even going to consider it..   I'll just going to be honest and explain what happen to my LO and if she said it's a no go then albeit..   This is stressing me too much, if this house is not for me, then is it not for me... 

[themizlyne]

They are looking to see if you have any regular debt payments that you haven't told them about. Like a monthly payment of $300 to Fred's Used Car Lot that needs to be factored into your DTI ratio. Don't worry about it - a collection here and there is almost normal.

[DallasLoanGuy]

i have been in this business for 9 years..... NEVER ONCE has an underwriter asked me to get a credit card statement from a client.

strange that they want it from a certain date.... and not 'last two months' or somesuch

something triggered this.

[pedsaktix]

According from my LO... The reasoning the UW wanted to review my CC statement is because I have made several payment in excess of the minumum payment .. She mention is it good that I have a habit of making such payment and it will be likely use as a compensating factor on the loan.  So, they wanted to see my statement covering certain period to show additional payment and mininum payment that was due...

But it's just unfortunate that the payment I did to the collection agency is inbetween in that time frame..

It would have been all good had that particular transaction is not named "Credit Services".. 

[pedsaktix]

What do you guys think..  should I mention the transaction to my LO and maybe she can explain it to the UW before sending it out...  I know regardless they will find it out once I sent this document but I wanted to soften it out as much as possible...

[IOBA]

Seriously??  I have NEVER heard of a creditor being concerned becuase you pay more than the minimum on a bill!

I would let it go, not say anything to the loan officer.  If the UW comes back with a question, then do letter of explaining.  Have your LOE ready just in case.  But I don't think it will come across as a big deal since the UW is concerned about you making big payments when you don't have to.

Please let us know how this works out.

[Christian123]

First I have to agree with everyone here.  That is very strange that they are asking that question and I have never heard of that.  

2nd-Maybe you can suggest to your LO that they get that information from your credit report.  It shows the amount due, the date it is due and the amount that was actually paid.  

3rd- If that doesn't work then give them the statement and if they are truly just looking for your payments black out everything else and leave the payments highlighted.