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Would i still be approved

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Anonymous
Not applicable

Would i still be approved

I am ready to purchase a house, got my score up to a little over 660 now.  Only problem is an old cell phone bill collection was i guess sold and placed with a much newer date Aug 2012 ( is this not illegal?)  I have an old reports i can show creditors from 2010/2011 with same account already in collections.  Will this take away from what otherwise has been a very good recent credit history.

 

BTW the charge is under $1000 (785)...looking for FHA

Message 1 of 7
6 REPLIES 6
JM-AM
Valued Contributor

Re: Would i still be approved

Worse case they will want you to pay it off.

Go speak with a Broker or LO. Do not pay it off now unless you know 100% they will remove from credit reports.

In my experience you will be okay.
Good Luck
May all your dreams and wishes become a reality!
Message 2 of 7
MovingForward_2012
Valued Contributor

Re: Would i still be approved

If your credit is good enough, it won't have to be paid. I have an old Comcast collection on my credit report (I hate Comcast/Xfinity...whoever they are now), and I was approved with a score of 703 and because my score is high, it doesn't have to be paid. I just had to write a letter of explanation for it. It is not illegal for them to update the date. They did it to me. First date of delinquency was in 2007, account wasn't placed on my credit report until 2009 and then they had the audacity to add KD (Key Derrogatory) to it in Sept 2012 which updated it and my scores took a hit. I will NOT be paying it, I will let it age and fall off.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Message 3 of 7
JM-AM
Valued Contributor

Re: Would i still be approved

Just to verify. Sometimes they will require it to be paid. YMMV
Good Luck
May all your dreams and wishes become a reality!
Message 4 of 7
MovingForward_2012
Valued Contributor

Re: Would i still be approved

+1, it is up to the underwriter's discretion. In my case, I don't have to pay. But typically if your score is borderline, they may require it to be paid.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Message 5 of 7
Anonymous
Not applicable

Re: Would I still be approved

Spoke with some lenders and I do not think collection is going to be a big deal.  However even though I pulled scores in the 660-670 range, lender only pulled a 632.  would I still be able to get a loan approval, my credit profile is pretty solid. 

 

BTW paying collection would not be a big deal. Two lenders (both brokers) still got me pre-qualified, but I don't want to waste my time or get hopes up, if deal will eventually just fall through.

Message 6 of 7
JM-AM
Valued Contributor

Re: Would i still be approved

Just leave the collection alone for now. If has to be paid to get approval you can pay at closing.

Ask the brokers if they deal with lenders approving with a 620 score.

If not shop other brokers, just dont let them keep pulling credit unless you know they have lenders approving a 620 score.

There are a few lenders still qualifying 620 scores. Its just much more work trying to get approved.

Good Luck
May all your dreams and wishes become a reality!
Message 7 of 7
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