First time home buyer - mortgage credit info

[Bell536]

It's my first time putting an offer on a home.  Question regarding  when mortgage lenders look at my credit report -

1.  Must the credit report be entirely free of  lates, collections and closed accounts?

2.  If I have lates, what time frame is bad? (My report is fine for the past year or two but have some lates in 2011 and  early 2012.  If I try to GW and remove them will that be best or ok to ignore?

3.  Collection accounts - i have a couple small ones for  a little over $100 (verizon/midland and gas company that i never got a bill from).  Are these a HUGE no no?

(I'm working on paying them and asking them to correct the account, but should I ask them to delete or is it ok for it to show paid collection?)

Just trying to generally get an idea if lenders do not approve anyone with any type of collection whether closed, paid, open or balance, etc.

  And if lates older than the past year or two are really bad and must be removed.

Thanks!  Sorry if I am too wordy or not clear.  Thank you guys!

[Sunshine85]

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@Bell536 wrote:

It's my first time putting an offer on a home.  Question regarding  when mortgage lenders look at my credit report -

1.  Must the credit report be entirely free of  lates, collections and closed accounts?

2.  If I have lates, what time frame is bad? (My report is fine for the past year or two but have some lates in 2011 and  early 2012.  If I try to GW and remove them will that be best or ok to ignore?

3.  Collection accounts - i have a couple small ones for  a little over $100 (verizon/midland and gas company that i never got a bill from).  Are these a HUGE no no?

(I'm working on paying them and asking them to correct the account, but should I ask them to delete or is it ok for it to show paid collection?)

Just trying to generally get an idea if lenders do not approve anyone with any type of collection whether closed, paid, open or balance, etc.

  And if lates older than the past year or two are really bad and must be removed.

Thanks!  Sorry if I am too wordy or not clear.  Thank you guys!

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Are the scores in your signature your true credit scores, and not FAKO scores? If so, it appears you will need to wait awhile and do some cleanup before applying for a loan. Lenders typically want a midscore of 620-640 for FHA or USDA. Work on GW for the collections and lates so that you can get your scores up.

What other positive accounts do you have on your report? If you have credit cards, try to get them below 10% utilization for a score boost. 

[Bell536]

Yes, those are lender pull numbers in my signature.  

Myfico updated today with Exp 566 (started cleaning up things on Friday by paying down debt to credit ratio and got two late payments removed on an old sams club card).

30 point jump... I'll take that!

I'm totally aware I need to get it up to 640+.  It's going to be quite a bit of calling and writing    PFDs and GWs.   ohhh boy.. fun times!

The big chunk is my student loans.  They are reported in six separate TL and TWICE due to OC giving to CA.  With CA I have paid on time for 3 years and called for her to change status from "late" to "current.  She is doing so and sending letter to confirm this.  Should I try to call OC and see if they will pull back loans? Or will that hurt me due to all the lates on the OC?

Anyone have advice for 3 small verizon accounts with Midland?  I send PFD but then read that they don't do it.  I know I paid the stupid things (moved and final bill/closed account, etc) but am willing to pay to get rid of it.. Should I PIF and then GW Midland?

Thank you!!!!  

[Sunshine85]

For the Verizon bills, if you know you paid them, and have proof, I would not bother to GW Midland. I would go the BBB complaint route instead, as I think you'll get much better results 

Re: the student loans, did they charge off, and that's why you're paying the collection agency? If they didn't charge off, I would think the OC would have recalled them by now, especially since you've paid on time for three years. Were the loans rehabbed? It doesn't seem like the reporting is at all correct- I'm not a SL expert, but try heading over the Student Loan forum here, as the posters there could give better advice on what you'd need to do to get the loans reporting correctly. I know some posters have used the Office of the Ombudsman to clean up reporting issues, and been successful. They may be able to help you as well. 

[Bell536]

Thanks Sunshine!

Unfortunately I do not have proof for verizon...was way back in 2009 when i moved.

The loans were not rehabbed...just paid it on time for 3 years.

The OC student loans reporting says "Account delinquent 120 days past due date.  Student loan perm assigned to government claim filed by with goverment for insured portions of balance on loan last reported delinquencies 04/2010. Last paid 04/10."

I guess "perm" means permanently? 

Collection Agency / Current payments says "Account Status ' Collection ', "last reported delinquencies 03/13"

(This is the one i called on friday and she confirmed i have paid on time for past three years and is adjusting to reflect that.  i just wonder about the

"collection" title of it)