Prefer Lender question

[_GOPackGO_]

My FICO 728 however my husband’s currently dropped to 620 on 1/2013 when a derogatory item was reported on his reports. I’ve since started the process of having this removed (validation of debt mailed in February) to Sunrise Credit Service under T-Mobile. I know there is no validation of this debt since we had a 2 year contract with T-Mobile, then after our contract expired we stayed with them for a year (with no contract) and finally moved on to AT&T when T-Mobile’s monthly bill became ridiculously too high. T-Mobile was informed we would no longer need their services and we paid the amount we owed them. We’ve been with AT&T for a year now and NOW this from T-Mobile? I know the wait time is 30-45 days regarding Sunrise to respond and then however more time for the bureaus to update. We are first time homebuyers and have decided on getting our first home built. We have even gone as far as putting down ‘earnest’ money for a piece of land in a development with the builder, Bloomfield Homes. Also, the builder has a preferred lender who they use.

Question:

-Should I go ahead and have us ran now with the preferred lender of the builder?

-How much more lenient and understanding would the prefer lender be as to another lender regarding this ‘temporary’ bump in the road for us and getting us approved?

-Would it possible that this lender would get the new construction loan approved (so house can start being built) while we continue to resolve this one derogatory issue with the current low score?

-Or should I just wait until the issue is resolved and then go with various lenders (including their prefer lender) for the best rates?

We had a realtor back in November and qualified for what this house price is for. We hadn’t came across Bloomfield Homes then nor the thought of having our home built had entered our minds. So we decided to put it on hold (the house search) because the holidays were right around the corner and I didn’t want to take this additional stress on and plus the realtor we had a contract with (expired in December 2012) was just not the ‘right’ one.

So now moving forward, I know we definitely want this house and we can afford this house as well (our debt is now lower than what it was back in November and my score has also increased since November as well, so we have a lot of positives EXCEPT this issue).

I really want to get the construction part going now rather than later.

Besides our credit scores, I’ve been at my place of employment for 11 years, my husband 8 years.

The only bump in the road for us right now is the lowering of his credit score.

Any and all advise would be greatly appreciated!

Thanks

[JM-AM]

Preferred Lender does not always mean you will get the best available. It is just a Lender the Builder deals with.

If the preferred Lender can get you approved with a 620 score then that may make the difference for you as finding a Lender to accept a 620 or lower mid score is not always an easy task.

Is it possible there is something else you can do to raise his scores? Possibly pay down debt?

As far as who to use for a Lender you have to make a choice on what is in your best interest. It may take some time to raise husbands scores, so you have to take that into consideration also. Another thing to take into consideration is the newness of the collection reporting. Some lenders will not approve wuth a new derogatory account in last 12 months.