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02-27-2013 04:24 PM
Looking to apply for a mortgage this year. I had intended on applying after my chapter 7 falls off in a few more months but I have heard conflicting reports about whether or not my score would even go up after deletion. While I have rebuilt some credit I have 5 collection accounts(3 Midland) that I settled within the past year. All that is left on report from a balance standpoint is student loans that are being paid as agreed. So my DTI is one of the few things working in my favor. I have a few low limit cc's that I applied for in the past year and keep less than 15% on those.
I am hesitant to apply for anymore so i dont have too many inquiries. My question is should I wait until the bk falls off completely before applying and is there anything else I can do in the meantime to raise my score? My fico is currently 668 and I'm hesitant to do anything else that could potentially lower my score. I would appreciate some insight since I am unsure what to do from here.
02-27-2013 05:10 PM
02-27-2013 08:53 PM
you have 5 collections post bk
that is bad
i would wait unless i had a VERYYYYYYYYYYY good explanation for the new collections after a bk
02-28-2013 03:54 AM
02-28-2013 04:57 AM
I should add that 4 of the accounts of those collections are 5-6 years old and one that is 2 years old. Again, all of those paid to zero balance. I realize that no collection or late payment etc. is ever looked upon as favorable in the eyes of a lender. I also realize that waiting until everything falls off the report, keeping revolving to a minimum, and establishing new credit over time is the best possible choice as far as getting a favorable mortgage. I do know that people get approval for scores that are less than mine. I guess for now I can give it a try and see what kind of rate they'd be willing to extend - yes, I could get dinged for an inquiry but if I end up waiting anyways it won't really matter.
I have noticed interest rates on the rise of late and expect they will continue to do so. It is quite possible I could wait a few years then home prices recover, rates go up, my score goes up but still it really wasn't worth the wait. I've rented for nearly 15 years now and I just look back at all the money wasted. Even a bad home loan(high interest) is better than renting IMO. Even if I am paying tons in interest, some of the money is still going toward something. There is also a chance I could restructure the loan at a later point in time once my credit has fully recovered.
02-28-2013 05:25 AM
When I went into UW I still had the BK on my reports, and I have lates from 2009 when my student loan went default. Plus a collection.
It has fallen off since then. Maybe thats why they didnt ask about it.
02-28-2013 05:27 AM
02-28-2013 05:39 AM
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