Ok, So I went from a 495-535 in March to a 595-589 today from what Quicken loans came up with. I am currenly trying to get to a 640. I called QL today to see if it was true for the 580 minimum score and they said yes, ran my social and came up with higer scores than I expected. Though I met the requirement, I have a DTI ratio of 10% and decent income, they told me they couldn't close the loan if I got approved because I have an open collection from a lease auto that is $7200 from Infiniti. I told him I wanted to see where I was at and hope to buy a home by years end. My question to you guys are, have you ever heard of something like this about not approving the loan because of a year plus collections account?
He also told me that he just needs it to say paid in full, erased, or settled, but it can not be open. These people doesn't want to do a pfd, so idk.
By the way, he gave me a ball park on what I may get approved for, he put me around $310,000-$350,000 the house I and looking at is being sold for $295,000 currently, only been on the market for 43 days though.
Starting Score: TU527 EQ517 April 2012
Yes, that is normal. First, a $7200 debt is substantial and non-medical. Second, it is only a year old. The SOL had not come close to running out, meaning with it still open and active as a collection, they can issue a lien on the home if you were able to get financed. It is doubtful you will get anyone to finance you for a $350k home with an open collection that high. It's a liability.
Thanks London, that makes plenty of sense, I guess I didn't look at it that way thank you very much for your help!!
The debt is from February of last year, at the time I tried working with them to see if I can settle, they didn't budge, 2 months later the called me wanting to settle for $3800, I said great, I can have the money in 2 weeks, they told me no, I had to pay them that now since that's the offer, it was only for then and now she stated, so I said can't do it. A month or so later they called again with another offer, again same deal. So now the haven't called me in about a year so I guess I will be contacting them now to see what I can do. To answer your question though, quicken told me under a 640 s ore they'll want 10% down, at 640 and above they'll want 3.5% down.
The reason they wouldn't let you pay the offer in a couple weeks is most likely because the collection was sourced out to a call center type company. They get a cut of what you pay, but if someone else collects on it in 2 weeks, then the one calling you makes nothing or gets only a small cut split with the one who collected.
I worked HR in a call center from 2007-2010. Granted we didn't do collections, but the game is all the same. Even when they offered $3800 to settle, you could've come back with, "I don't have $3800 but I can do $2500 RIGHT NOW." It might have worked...
@jcamm wrote:Have fun with Quicken loans, they are scam artists, alot of negative reviews.
I just closed on a loan with Quicken, and had a great experience. I started the process in April, and closed in June. Their online tool worked flawlessly and I always knew where we stood in the process. They were also good at returning my calls. FWIW, I didn't feel scammed in the least bit.
Starting Score:2/1/16 565
I've definitely heard both ends of the spectrum with Quicken Loans. Some people have had awesome experiences with them and knew where they stood almost every minute of every day. Others have reported that it was always a fight with them. It must all depend on who your assigned LO and underwriter are.