First Time Home Buyer

[Anonymous]

On the road to preapproval for a FHA loan. When I first started with my Loan Officer on 4/4 my Mortgage scores were EQ 553 TR 528 EXPERIAN 598  Currently today 4/26 My Mortgage scores are EQ 593  TR 552  EX 605 .  I had two public records accounts which were paid but not reporting as such that I am currently correcting. I have 1 secured QS 800 UTI 4% non secured Captial One 300 UTI 2%, I always pay my balance before statement date but I had a  remaining balance of 11 and 34 this month.       I also have student loans which I pay my monthly payments on time.     I was thinking how could I increase my score?  My LO wants my median score to be 615 

I was thinking if I pay my credit IN FULL, NO BALANCE would that help ?

I do have several  collections account but thought these two would be the best for my DTI also.  

Tmobile 2881 , I have no idea how its that high but okay 

Sprint 695 , I was going to settle 60% 

Thank you for any insight

4/26/2016  

EQ632 TR604 EX617

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[Anonymous]

It's best to have 3 open CC tradelines and only have 1 of those 3 report a balance. The goal is to keep it between 1%-9%. If you are going to pay off collections, try to negotiate a PFD rather than just paying them outright.

[Anonymous]

Thank you so much. I wasnt sure if opening another CC would harm my score. I will make sure to negotiate a PFD 

[Anonymous]

Before settling on any collections talk to your mortgage lender.   Some will not allow you to settle on accounts.  You could negotiate a PFD or settle

with a paid in full on your credit report with the collection agenices.  

[Anonymous]

Thank you so much , great advice .

[BrianB_The_Loan_Professor]

You may get the needed points when the paid public records report correctly - I would wait and see what happens there -

Good Luck

BrianB