I'm interested in getting some advice on whether or not my loan will make it through underwriting- despite an optimistic start to this process during pre-qual. So here is the situation: The LO has said that they'd like my FICO scores higher, but I think that I'd be OK for FHA where I'm at-
EX: 672,TU: 644, EX: 618 Only doing FHA to not exhaust all savings & keep downpayment low.
Paid off the balances on credit cards per the LO's suggestion at the start of this process 2.5 weeks ago, but have a car loan of $18k & a student loan with a balance of $5k. Been employed at my job for 5.5 years and income of $50k. I've had a mortgage on a condo for 7 years with no lates (for sale and under contract at the moment). Whats killing my score is medical collections. 5 paid, but 2 unpaid remain open on all 3 for $8 & one for $86. The home I'm trying to buy is approx $35k more than what my condo loan was when I bought it in 2006, but with interest rates where they are now the payment remains the same if not LESS because no more HOA dues!! The LO suggested yesterday looking into a co-signer on the loan, which one of my parents agreed to do if necessary. Seems like every hurdle they throw at me, if I'm able to overcome it, they find another. Is this a sign that the lender just doesn't want to do the loan??? Why when I've demonstrated for years I can service he debt I have?!?! This process has put me on the verge of a nervous breakdown. With the sale of my current home pending & the clock ticking, I fear I will be denied & lose the property I've offered on. Living in my car with 2 dogs isn't really how I want to end up.
Thanks. Maybe I'm just being paranoid. I've read on other threads that paying off outstanding medical collections can actually take the score down?
Maybe try doing a pay for delete. "The collections are so low I am sure they wont mind getting them out their system and delete. Do the CA update currently?