I want to apply for a mortgage when my collection accounts fall off next summer. I would still have 2 medical judgments and 2 collection accounts, as of now, only 1 collection is paid, everything else is unpaid. First, does anyone think I can hit a midscore of 640 by then? My positives are in my signature line, plus an auto loan from March 2011 and a secured loan from August 2012. And as of now, I have about 16 inquiries, most of them from November 2012 (I'm gardening NOW). Second, is it right to assume that I probably won't get approved if I don't pay those judgments off? Also, with my credit scores and situation, how likely would it be that I get approved and how much do you think I would be asked to put down?
Try to get a pay for delete with those medical collections. If that does not work just pay it and then dispute it.; because 9 out of ten times the Bureas will just delete it after the investegation. I have done this at least 5 times and it worked. Nevermind, you said that they will fall off next year. Those inquires will have to hit the year mark for those not to count against your credit score. I see your score going up to close to 640 but not greater than 660. The reason I say this is because those collections are not really harming your score that much, because they are about to age off so the negative impact has some what diminish. Those inquires; however, are holding down your score about 12 to 20 points.
The judgements you will need to pay off and make sure they are satisfied with the courts. If you can get them vacated/dismissed that would be even better and you would see a nice score bump most likely. How much are the collections for? Do you have the funds to offer pay for deletes for the collections? Also, I wouldn't recommend disputing anything if you are going to be trying for a mortgage. If it still shows "consumer disputes" at time of mortgage application you will have a bigger mess then because all of those comments must be removed.
I'm assuming you are going for FHA? If yes, then 3.5% down is required. I was also required to show closing cost and 3 months reserves, but not sure if this varies by lender. There are other factors in determining if you qualify such as DTI ratio and employement situatio (along with others). This is a great forum to be on and you will have your score up in no time =)