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Advice for increasing mortgage score

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curioustraveler
New Member

Advice for increasing mortgage score

Hello,

I'm new here, but was looking for some advice. I need about a 10 or 15 point jump in my mortgage scores to obtain a mortgage loan. My question is which option do you think is best for obtaining this jump ?

1.paying off one of my two collections and having it removed from my report( they agreed to remove it).

2.paying off a credit one card that's charged off with a 400.00 limit, but they are reporting it at 175% usage to all the bureaus because balance is over 700.00.

I also have a charge off with wells fargo that has a 1800.00 balance, if that helps.

3 of my open cards are paid in full, and one is at less than 10% usage.

Thanks for all your help !

Message 1 of 12
11 REPLIES 11
VALoanMaster
Valued Contributor

Re: Advice for increasing mortgage score


@curioustraveler wrote:

Hello,

I'm new here, but was looking for some advice. I need about a 10 or 15 point jump in my mortgage scores to obtain a mortgage loan. My question is which option do you think is best for obtaining this jump ?

1.paying off one of my two collections and having it removed from my report( they agreed to remove it).

2.paying off a credit one card that's charged off with a 400.00 limit, but they are reporting it at 175% usage to all the bureaus because balance is over 700.00.

I also have a charge off with wells fargo that has a 1800.00 balance, if that helps.

3 of my open cards are paid in full, and one is at less than 10% usage.

Thanks for all your help !


When is the last time the collection account reported? If it's currently reporting every month, you should see a pretty decent score bump when it's deleted.

You should also see a bump if you pay off the charged off account.

I ran a credit simulator for a client last week and it showed a 12 point increase for paying off just 1 charge off.

You could apply with a lender and have them run a few credit simulators to see which option will give you the best score increase.

VA Mortgage Expert. Mortgage Banker lending in All 50 States.
VA, FHA, USDA. Jumbo, Conventional.
CAIVRS Expert.
Message 2 of 12
curioustraveler
New Member

Re: Advice for increasing mortgage score

I have a credit.com premium account, and they show up every month in my report. Is that what you mean by collections reporting ?

Message 3 of 12
curioustraveler
New Member

Re: Advice for increasing mortgage score

I did just pay off a charge off from an old macy's cc, that was with a collection agency last week. Maybe that will help some. I literally just need 10 or 15 points.

Message 4 of 12
VALoanMaster
Valued Contributor

Re: Advice for increasing mortgage score


@curioustraveler wrote:

I have a credit.com premium account, and they show up every month in my report. Is that what you mean by collections reporting ?


Yes. If the collection account has not reported in a year or more, you generally want to leave them alone. 

VA Mortgage Expert. Mortgage Banker lending in All 50 States.
VA, FHA, USDA. Jumbo, Conventional.
CAIVRS Expert.
Message 5 of 12
VALoanMaster
Valued Contributor

Re: Advice for increasing mortgage score


@curioustraveler wrote:

I did just pay off a charge off from an old macy's cc, that was with a collection agency last week. Maybe that will help some. I literally just need 10 or 15 points.


Did the collection agency report that account as a collection on your credit?

VA Mortgage Expert. Mortgage Banker lending in All 50 States.
VA, FHA, USDA. Jumbo, Conventional.
CAIVRS Expert.
Message 6 of 12
curioustraveler
New Member

Re: Advice for increasing mortgage score

Yes, remex Inc. is the collection agency that reported it.

Message 7 of 12
VALoanMaster
Valued Contributor

Re: Advice for increasing mortgage score


@curioustraveler wrote:

Yes, remex Inc. is the collection agency that reported it.


Since it was reported as a collection, you likely will not see an immediate improvement to your scores.

VA Mortgage Expert. Mortgage Banker lending in All 50 States.
VA, FHA, USDA. Jumbo, Conventional.
CAIVRS Expert.
Message 8 of 12
curioustraveler
New Member

Re: Advice for increasing mortgage score

They are deleting it off my report. Are u sure about that ?

Message 9 of 12
VALoanMaster
Valued Contributor

Re: Advice for increasing mortgage score


@curioustraveler wrote:

They are deleting it off my report. Are u sure about that ?


If they're deleting it, you should see improvement.

VA Mortgage Expert. Mortgage Banker lending in All 50 States.
VA, FHA, USDA. Jumbo, Conventional.
CAIVRS Expert.
Message 10 of 12
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