@Anonymous wrote:
credit underwriting huh? never heard of that. There is just so much to learn. the bad account I have is a capital one collection, which the bank says is slated to fall off in August( I owe 1,600). Perhaps , I should call her and ask what to do again, She said it was no big deal today. I just worry because like I said before, and like you have experienced, it would suck to have something fall through last minute.
If in underwriting, they say no because 1,2, and 3....do you get a chance to rectify the situation, or is just flat out no?
I, too, am hoping to buy a home by summer's end. I have collections that are paid and some that are not. I have quite a few that will fall off in a couple of months (June 2010). I am not going to touch the other one's unless I can get PFD.
If I were you, I would NOT pay off this collection unless instructed to do so by the LO. I have reading these forums for a while now, and all of the experts say: Don't do it!!!!
The reason: paying this off will show RECENT activity on this account and re-age the collection. Fico will see it as an update and your score will drop. You definitely don't want that. Some lenders do require that you pay collections off, but you are required to pay it off at closing, not before closing.
I agree with an earlier post that you should not wait until a week prior to closing to go to UW. Insist that your LO sent your file to UW as soon as possible. This way, if there are any surprises, you can handle them without the risk of losing out on getting your home.
Just my 2 cents!! :-)
