In process of buying a home/ new collection on credit report

[hiphop101]

I am in the process of buying a home. I have a new collection, that may post. I will be able to pay it off, but wondering how that will effect closing on house.

[Booner72]

Hello ----

What are your credit scores?  Do you have good DTI/employement, etc.?

Is this FHA/USDA/CONVENTIONAL loan? - If it's USDA or FHA it will not work out because you have to have 12 month "clean credit" for FHA and USDA requries all the collections to be at least 12 months old.   (This is if it hits your reports..luckily it hasn't yet and you can do whatever you can to stop the reporting).

I've had 3 different CA's tell me that if you pay within 30 days it won't post to reports.  Back in May, right when I started the house process, a CA came after me for 500 bucks for a hospital bill - I had been making payments to the hospital and miss one.  Boom.  Collection letter.  Luckily they didn't report it.  Though I did call them every.single.day asking "Are you SURE it isn't going to report?"  "Are you positively sure?"  I was sweatin bullets for a couple a months there thinking it all would go in the tank.  Luckily they stuck to their word.

I'd say if this was a Conventional and you had a relatively large down payment and great credit then it might be something that the UW could or would overlook.

How many points did you lose when the collection it?

My advice is to PFD this thing ASAP and get rid of it.

Have you "opted out"?  I'm guessing not.  When the bottom feeder debt buyers soft pull our credit, they see we are looking for a mortgage, and these old collections appear out of the woodwork.  I suggest you opt out immediately.