We are pre-approved for the USDA Guaranteed Loan and are looking at homes in the 130-150K range. My husband has a Time Warner cable bill on his report. This has been reporting since 2006 and even though we should have taken care of it A LOT earlier, we didn't. CMI are now the owners of said debt at $334.00.
The debt was never paid because the $334 charge is for returned equipment- the thing is it was returned but the gal wrote the serial# from one of the receivers wrong on the return slip.... so it looks like (to them, anyway) that I still have equipment when in actuality I don't. I have submitted my proof time and time again to Time Warner as well as CMI to no avail. They just keep coming back with pay it.
Now, my concern is I know this debt will have to paid one way or another if we find a home we like and make an offer. I thought it would be easier so it wouldn't affect our scores before it goes to the lender for approval to have it paid during or preferably after the close BUT the LO is saying that this will have to be paid prior to us submitting to the lender for approval. If that is indeed the route we have to take, what would be the best option?
Should we attempt the DV Letter and see what happens from there? If they couldn't validate, wouldn't they have to remove the charges? If they do validate, would a PFD be in order?
Should we offer CMI a PFD? Are they good about honoring it?
Should we just straight out pay it? If so, will that drop his score? Hes borderline on approval as it is, according to LO his are 618 EQ, 632 EX and 628 TU.
I don't want to mess up the pre-approval and things of that nature so I'm just figuring what would be the best bet. Outside of that cable bill, his credit is fine. We don't have any CCs (maybe later after this home). He has Sallie Mae student loans and the car payment, all of which have never been late.
I just don't want to blow our chances since out of 4 or 5x applying we *finally* got the pre-approval. Thank you for any advice.
