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Ready to apply - should I pay old chargeoffs?

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qtssima
Established Member

Ready to apply - should I pay old chargeoffs?

 

Have spent some time on these forums trying to clean things up and it is getting better. We are looking at houses and I have a few questionable items on my credit that I am unsure how to deal with.

 

 

 

  1. Credit.  My credit scores are TU 645 EQ 650, my boyfriend is TU 670 EQ 685. He has one negative, a medical collection that he went to court for and the insurance company ended up paying -he has not pulled new scores since then, I have asked him to, I think he would be in the 700's at this point. Plus, he opened a new auto loan since then and has over 6 months of on time payments. On the other hand, I have late pays and a few charge offs, all are from 2008-2009. I have one collection account that I have tried to remove. I don't know how much my credit would go up from removing it at this point as it has been there since 2011. It is very frustrating but I think the damage is baked in to the numbers. I have boosted my credit score by correcting some inaccuracies and opening a secured credit card. I recently (3/13) got a new auto loan that has yet to report.  We both have credit going back for over a decade.
  2. Income.  I make $110K a year, my BF abut $160K
  3. Source of income.  Employment -we are both commissioned salespeople.
  4. Monthly debt payments.  I am paying on two closed credit cards, a student loan, and have a car payment. My BF has two open credit cards and a car payment. We are right at 35% DTI.
  5. Employment All W2 income.  We have both been in our industry for over a decade. I have been with my current employer for 7 years, my BF longer - I think 11 years. 
  6. Assets/Reserves. We have about $120K in reserves. We plan to use about $70 as a down payment. I should state right now the majority of this is in my BF's name, if that makes a difference.
  7. Location.  We live in WI -Dane County
  8. Property.  We are looking at a singe family home - prefer newer construction.
  9. Value.  We are looking in the $300K-$350K range
  10. Occupancy.  Primary residence
  11. Transaction Type.  New home purchase. We have both owned a home before, so no first time homebuyer programs will apply.

Many years ago, I was a loan processor so I kind of know what gets looked at, but the rules are different now so I just want to know if we should try to get pre-approved or if there is anything additional I should try with my credit before that? I also am wary of "poking the bear" and something getting updated negatively, so I want to be very careful how I proceed.

 

Thank you so much for the help.

Message 1 of 3
2 REPLIES 2
qtssima
Established Member

Re: Ready to apply - should I pay old chargeoffs?

bump

 

Also, I have disputed items and have read that I should try and have the term "disputed" removed. Even if I am the one that disputed?

Message 2 of 3
webhopper
Moderator Emeritus

Re: Ready to apply - should I pay old chargeoffs?

Best advice: do not buy a home jointly with your boyfriend. Look for something you can afford on your own. Otherwise you might be fine for a conventional mortgage, you'll have to find a broker to apply. Your scores will be fine since the down payment is there.
FICO 9:
Filed Chapter 13 on 6/1/2017 after job loss. Discharged 6/1/2022.

Goal: Gardening!


Message 3 of 3
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