Should I pay two small collections before applying for morgage?

[newhomer]

Hi all, I am planning on buying a house in 6 months. I have two small collections. One was verizon $132  and t-mobile $298 about 5 years ago. Long story short, it wasn't unintentionall not paying the bills, but unawared of the bills. Alot of people are telling me to leave it alone as it is going to hurt my report more than help. That's why I left it alone for the past two years. Current credit score are Transunion 720 Experian 710 Equifax 690. Should I pay the collections before applying for the loan? or should I just leave it alone?

Thanks

[themizlyne]

See if they will accept a PFD.

[StartingOver10]

Leave them alone. If the u/w wants them paid it will be in your conditions. They seem too small to effect the u/w decision.  If you pay now it will tank your score unless you can do a pfd.

[DallasLoanGuy]

leave them alone.....

[newhomer]

Thanks everyone,

I am going to try a Pay for Deletion. If that doesn't work, I will leave it alone. Another question is will the collections effect my interest rate? or do they go base on the credit score?

[StartingOver10]

Interest rate is score driven on conventional loans. Not on FHA loans.

[Walt_K]

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@StartingOver10 wrote:

Interest rate is score driven on conventional loans. Not on FHA loans.

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Some lenders still give breaks for higher scores for FHA loans, at least that is what I was told when I was shopping around.  It's not as differentiated as for conventional loans, but I was told I was getting a lower rate for having a mid-score above 720.  Maybe they were blowing smoke.

[Booner72]

Be sure to "OPT OUT" before you start the mortgage process in case there are other lingering things out there. Google 'OPT OUT' but basically, it prevents collectors to know what you are doing with your credit.