@Anonymous wrote:
Can anyone give me any tips to get the best possible chance of getting approved for a mortgage next year ?
Im 22 years old, , credit scores off ck is 726 TU and 705 Equifax .
My only concern is I have a hospital bill in collections for 770, they offered to settle for 426 but won’t accept to pay to delete so I’m not sure it it would be worth it .
Any suggestions to getting that resolved ?
3 credit cards
1 capital one QS1 , balance 0 - CL - 4750 ( I just setup my insurance to autopay with this card 250 a month and I will pay it off the next )
1 capital one plat unsecured - balance 0 - CL - 500
Have 50 going out in autopay bills and I pay it off in full
SunTrust - balance 1040 -CL - 1500
Also have a car loan with SunTrust at 17k and it started at 28k
Oldest one is my capital one unsecured with 3 years now
My derog is for a hospital visit in 2014 but it seems like it just now got reported to my credit report
1. Pay off the hospital bill. Immediately.
2. Pay off your credit cards. On an ongoing basis let one report a small balance, and the other two report a zero balance.
3. Pay down your car loan as much as possible, but not to zero.
4. When you get close to thinking of applying for a mortgage, spring for a full MyFICO report so you can see how your mortgage scores look.
5. Think twice about whether you can really afford to buy a house; even if you can qualify for a mortgage, it doesn't mean you can afford the costs of being a homeowner.
@Anonymous wrote:
So what you’re saying is pay off the hospital bill even though it won’t get removed ?
Is it ok if I do the settlement ?
In my opinion you should pay it in full. Sometimes when you do a settlement it winds up besmirching your record for a long time, as a charge off. If you want to buy a home, you don't want to play games with this type of thing. You want to be able to look the loan officer in the eye and show him or her that you pay your obligations.
After you pay it off you might be able to get it removed anyway, by sending verification letters, etc.
@NC_Mtg_Loaner wrote:pay it, settle it, wipe your butt with the receipt.....
What I am more concerned about is how much money do you have saved (or will you have saved) for a down payment and closing costs?
that's what will help determine your loan program.
I don't agree with that at all. There are multiple factors that will be taken into account.
Not only do you have to worry about a down payment, but there is also additional costs - closing costs, inspections and appraisals you have to fund up front (credit on the back end), and 3 months of taxes and home owners insurance you have to fund at closing. Additionally underwriting has requested that I have 6 months of savings, post closing. Luckily, we anticipated it.
Once you get into your home, there are always things you need/want do right away.
Hopefully you will not be in a sellers market and in a bidding war. We stuck to our offer. We could have gone higher. I’m so happy we didn’t. Hopefully I’ll be able to post soon as a May closer.
