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Can I qualify for a mortgage with 2 open collections?

Regular Contributor

Can I qualify for a mortgage with 2 open collections?

We want to purchase another house in about 2 years. Will I be able to qualify with 2 open collections? Actually it will probably be one-from Portfolio Recovery. I want to pay it but I don't want it to bring my score down when it becomes paid or settled.

 

In two years I hope to have all on time payments and possibly that one open collection. So would I even qualify for a mortgage assuming my scores will be at good and on time payments for the last two years?


Starting Score: 520
Current Score: 627
Goal Score: 700


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4 REPLIES
Frequent Contributor

Re: Can I qualify for a mortgage with 2 open collections?

I spoke with an LO this past Thursday and I was told that all outstanding balances had to be satisfied  I have one unpaid collection that I've gotten down to $1200 and I'm trying to pay it off quickly so I can apply next month.

 

I would call the bank or mortgage company you want to do business with and just ask about the qualifications and process.  It was very helpful for me and I found out everything they are looking for, how long it would take and what I needed to provide.

 

Hope this helps!

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Established Contributor

Re: Can I qualify for a mortgage with 2 open collections?

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Regular Contributor

Re: Can I qualify for a mortgage with 2 open collections?

Thanks, I didnt want to pay it because when I do it will make my score go down since it will look current

Starting Score: 520
Current Score: 627
Goal Score: 700


Take the FICO Fitness Challenge

Message 4 of 5
Established Contributor

Re: Can I qualify for a mortgage with 2 open collections?


HigherFico wrote:
Thanks, I didnt want to pay it because when I do it will make my score go down since it will look current

Ask to pay it at closing, that way any score drop won't effect your mortage.

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Message 5 of 5