I am not sure if I should post this in Rebuilding or Mortgage so I will post in General Forums for now. I was originally going to wait and apply for a mortgage around November due to my lease being up March 1st. and my credit would be a little bit cleaner then. I have a First Premier CO, Best Buy CO, and a collection from Fair Collections & Outsourcing (all paid) on my credit report. I had a paid judgment removed in July so I am hoping that would help out a little bit when applying.
Best Buy - due to fall off report Oct 2012
First Premier - due to fall off report Nov 2012
FCO - due to fall off report Jan 2013
I have changed my mind and think I would like to apply for mortgage now. The condo that I am currently renting is literally falling apart. The foundation is starting to go and getting worse rather quickly. I woke up this morning to my counter tops no longer "fitting" together due to this issue. I have talked to my landlord and he just says he isn't sure really what to do.
So my question.....would it be smarter to wait until my CO's fall off and pray my house stays standing or would a bank not really think much about these since they are so old and paid? I have read, read, read and thank you all so much here for even getting me to this spot of "thinking" about a mortgage.
Do you have any idea where your FICO scores are now ? If not, then I'd recommend pulling the Equifax FICO score from myFICO, it is the same model FICO score that will be used by your mortgage lenders.
Having these negative accounts off your reports will likely help your scores, but it would helpful to know where you stand now.
I pulled my score in July from here and my Equifax was 671 with the judgment still on my report. The judgment is now gone so I am hoping it would either be the same or a little bit higher. I have the USAA monitoring service to see when my items actually fall off my reports, but obviously can't rely on their scoring.
Yeah hopefully it would be higher ~ although the CO accounts will probably still keep your score down until they come off....
I guess it depends on how eager you are to get into a house. What is your creidt score now? Look into an FHA loan...they are a little more lenient. (I got one with a 650 credit score and $0 down in 2008). When your collections fall off, then you can refinance at a lower rate through an FHA streamline, if they're lower at that point. Based on my own experience, I'd recommend that.