Established Member
JasonL
Posts: 28
Registered: ‎10-03-2011
PRE-APPROVAL - Collections

Hello,

 

We have been pre-approved for a loan, but are being told that all collections will have to be paid before we close. This is fine since we have the funds to do this.

 

It's about $2500 on 7 different accounts... Cell Phone,Utilities, Store cards. All over (4) years old.

 

Do we start paying these now? Some of them are so old that it's hard to even track down the owner. We have been paying some in full, other we are offering lesser amounts.

 

Will paying them hurt the scores?

 

Any assitance apprecited.

 

Established Contributor
jordanmedical
Posts: 1,011
Registered: ‎04-08-2012
Re: PRE-APPROVAL - Collections

I would ask to pay them at closing so paying old ones won't make their activity more recent, possibly lowering your score. I would suggest paying the ones you can get to do a PFD for though.

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Valued Contributor
beb86
Posts: 1,115
Registered: ‎10-31-2011
Re: PRE-APPROVAL - Collections

jordanmedical wrote:

I would ask to pay them at closing so paying old ones won't make their activity more recent, possibly lowering your score. I would suggest paying the ones you can get to do a PFD for though.


I agree with trying to PFD on the collections however I would start with the oldest and offer under 40% since the are older the most likely will take your offer than work your way up to the newest.....and you will probably have to have them paid and the UW signed off on them before you get cleared to closed.

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