First Time Buyer wants a FHA Pre-Approval

[Anonymous]

I am a first time buyer, I have been working on my credit since Oct. 2010...I have paid off all of my credit cards to 10% utilization...I have found the home that will be perfect for my large family at a fantastic price.  My concern is that I was hit by a CA in January I paid off the debt and I am waiting for them to update on my report...even with an increase in points on myfico how will this affect me getting a pre-approval and eventually closing on a FHA loan??  In Ohio there are programs to help with budgeting, and certificates that can be earned to educate first time buyers (OFHA), would it help my situation to participate in this type of program to increase my chances of closing on a loan??  I think my biggest fear is the underwritting process...I have read some of the stories and it is just heart breaking what happens to people just trying to buy a new home...

[mauve]

You should go through the OH program.  If it's anything like MI's program, they put you through a class where they tell you all kinds of stuff that you didn't think of about homebuying.  Then they refer you on to another agency, where they will pull your credit reports and go through them with you and tell you exactly what you need to do to qualify.  If they think that you're ready (or when you've accomplished the items they tell you you need to), they'll give you clearance to purchase and send you to their lenders.  They'll go through the loan items with you so you understand terms and can choose a lender, and you may get referred to another agency if you qualify for other assistance, like downpayment / closing / renovation assistance.  That's the MI program, but I'd bet the OH program is largely similar. 

If you can't get that CA off of your reports, you very well may not be able to purchase for 12-24 months.  Check out the Rebuilding boards for advice, and search for that specific CA to see what has/hasn't worked for other people. 

[Anonymous]

I was looking at my credit report and the debt is still listed under the original creditor Verizon, but the collection agency is not listed, they have been paid in full but have not updated yet...thanks for the feedback, I think what ever I can do as a first time buyer to increase my chances would help...

[llecs]

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@Anonymous wrote:

I was looking at my credit report and the debt is still listed under the original creditor Verizon, but the collection agency is not listed, they have been paid in full but have not updated yet...thanks for the feedback, I think what ever I can do as a first time buyer to increase my chances would help...

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Aggressively send GW letters to Verizon asking them for deletion.

[mauve]

Paid or not, if it's a collection that recent, it can kill your chances at a mortgage.

[Anonymous]

I figured that would be my best option I have tried to contact them by phone with the number listed on my credit report but it is not a working number...strange...anyway I have been checking out the examples in the other forum and I am going to get the letters out ASAP...in Feb I spoke with them so I could pay them off in full and they said they could not take my payment..so I paid the collection agency instead, when I called VZ in March they offered a settlement but I told them I wanted to pay in full to them but was told they would not take my payment I was then told that they changed their methods!!!!  I was furious...now there is all of this time wasted for VZ to update!!! I filed a dispute with the CRA's because the information still moving into April is not updated....

[Anonymous]

That is what I was afraid of....