cancel
Showing results for 
Search instead for 
Did you mean: 

New collection during home loan process

tag
Rockpea
Established Member

New collection during home loan process

I just got a notification from MyFico that a CA was added to my husband's credit report. It says it's from 2013.  Not really sure what it is.  I think it is from a cable company that he let his mom get in his name.  It dropped his score over 80 points but he is still a little over 700.  We have already sold our house, had it inspected and appraised.  Just waiting for closing date for current house and our new one.  How will this affect us? Should we contact CA or loan officer?

Message 1 of 5
4 REPLIES 4
SupraTurbo2jz
Regular Contributor

Re: New collection during home loan process

This exact thing happen to me and the wife when we bought our house. First thing I would do is contact your LO and let them know..that way there's no surprise at the closing table. Second see if they have already done the second (soft pull) normally a couple weeks prior- up to day of closing. If the scores havent dipped below 700 (620) I dont think It would be a huge factor maybe a bit more in interest or points. Did you do FHA or conventional? For us our mortgage co had already done the second pull and we where 2 weeks out from closing. But he said as long as the middle score stayed pat we're good. Hope that helps.

 

edit to add. 

 

You may have to simply give an explanation for it like you would any other conditions and move on, worst case pay it. My wife was barely at 630 when we bought so I can't see it killing the deal.

CH 7 BK discharged 05/15 goal scores 680 across the board
Current Score: TU 657 EQ 676 EX 657 FICO pull 03/20/17

 photo cabelas 3700.jpg
 photo Disney siggy 5000.png photo SWP Premier 2500.png photo virgin america 2300.jpg photo lexus 2500.png photo toyota 2500.png photo kays1500.jpg photo hsn4000.png photo GoodSam 1000.png photo buckle 900.jpg photo af 250.png photo valero.jpg photo fingerhut.jpg
Message 2 of 5
Anonymous
Not applicable

Re: New collection during home loan process

You should contact you LO immediately. This negative can change a lot of things for you and not in a good way

Message 3 of 5
Anonymous
Not applicable

Re: New collection during home loan process

The same thing happened to me and we literally just started the process, we are still in the option period. I called the collections agency and did a pfd. They said that it would be deleted in 7 business days from the date that my payment posts. I spoke with my loan officer and she said it would be fine, so I'm not going to worry. Just waiting for the deletion.

Message 4 of 5
Rockpea
Established Member

Re: New collection during home loan process

Thanks.  Now, it just looks like I need to find out who my loan officer is.  I sent an email to him and got an automated response saying he is no longer there, and to contact this other person.  Tried that and they are no longer there.  Guess I'll pick up the phone now and find my LO.

Message 5 of 5
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.