topic Can I qualify for a mortgage with 2 open collections? in Mortgage Loans

Can I qualify for a mortgage with 2 open collections?

HigherFico — Fri, 14 Mar 2014 23:45:00 GMT

We want to purchase another house in about 2 years. Will I be able to qualify with 2 open collections? Actually it will probably be one-from Portfolio Recovery. I want to pay it but I don't want it to bring my score down when it becomes paid or settled.

In two years I hope to have all on time payments and possibly that one open collection. So would I even qualify for a mortgage assuming my scores will be at good and on time payments for the last two years?

Re: Can I qualify for a mortgage with 2 open collections?

nativenyer — Sat, 15 Mar 2014 17:24:50 GMT

I spoke with an LO this past Thursday and I was told that all outstanding balances had to be satisfied I have one unpaid collection that I've gotten down to $1200 and I'm trying to pay it off quickly so I can apply next month.

I would call the bank or mortgage company you want to do business with and just ask about the qualifications and process. It was very helpful for me and I found out everything they are looking for, how long it would take and what I needed to provide.

Hope this helps!

Re: Can I qualify for a mortgage with 2 open collections?

fot1 — Sat, 15 Mar 2014 17:57:01 GMT

http://ficoforums.myfico.com/t5/Mortgage-Loans/FHA-Disputed-Accounts-amp-Collections-UPDATE/m-p/1452552

This thread covers open collections

Re: Can I qualify for a mortgage with 2 open collections?

HigherFico — Sat, 15 Mar 2014 19:27:43 GMT

Thanks, I didnt want to pay it because when I do it will make my score go down since it will look current

Re: Can I qualify for a mortgage with 2 open collections?

fot1 — Sat, 15 Mar 2014 22:20:52 GMT

@HigherFico wrote:
Thanks, I didnt want to pay it because when I do it will make my score go down since it will look current

Ask to pay it at closing, that way any score drop won't effect your mortage.