Planning to do a test mortgage app next year. What do you do if baddies pop up?

[delaney1]

DH has one more thing to pay off, but it doesn’t show up on reports( judgment). Mortgage score from Credit check total is around 800. Others should be similar as he has nothing on his account except for AU accounts. 

The plan is to get a couple of credit cards in his name at the end of this year, or the beginning of next, pay off judgement and a few months later( summer 2020) app for a trial mortgage with a bank we don’t plan to do business with. Real mortgage won’t come til around March 2021. I have two questions.

1. So, what do you do if old baddies pop up on the report that are outside of the SOL for reporting? I know there was an 2012 Verizon bill that was reporting for a while, and an old medical collection too. We have no recollection of the medical, but Verizon was legit. As I said, his reports are 100% clean, just not sure what to do if that happens.

2. How far along do you go in the process with a trial mortgage app?

[JVille]

Use the My Fico website to pull all 3 Data Banks Mortgage Scores which are completely different than the free scores with sites like Credit Karma or free with Credit Cards. The score your “Purchase” here are the actual ones the banks will pull. Then you can go line by line thru the report.
And remember the score used is the Lowest Middle Score when looking at both borrowers. Have you checked your own score.
If you have Collections outside the SOL (what state?) then contact each CB they are reported in and get them removed.
If you are not in contract for a property then the lender can actually only Pre-Approve you.

[delaney1]

Our scores are not an issue I have questions about. 800 is my real score well it’s actually 803 Experian FICO mortgage score. DHs is about the same last I checked a couple of months ago. I have no need to pull all my mortgage scores at this time. I’m sure they’re all with in 30 points or so of my EX.

Thanks for info about disputes and how far we need to go with it though. Anyone else?

[CreditInspired]

If you’re not interested in applying for a mortgage until Mar 2021, I say start about 6 months out looking for neighborhoods you are interested in, and then apply for a mortgage around Dec 2020. And with your mortgage scores, IMHO, there’s no need to waste a lender’’s time doing what you call a test mortgage if you know for sure you won’t use them. If something pops up on CR during mortgage process, just be upfront with LO (you’d be amazed at how many borrowers don’t), and he/she will guide you in what steps to take.

Hope this helps.

[delaney1]

Oh wow, no test huh? Thanks for the info!

[CreditInspired]

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@delaney1 wrote:
Oh wow, no test huh? Thanks for the info!

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Nope. No test.

I hired a Realtor in December 2017. Told her I wanted to drive around on my own and see what neighborhoods I wanted to live in. I went to open houses on my own. She would send me listings according to the criteria I provided.

In January 2018 I was ready to look at some of the listings she sent. I bank with NFCU and they had the type of loan I wanted so I also applied for the mortgage. Got a prequal right away. It was $100K more than I was planning to spend. 

My contract on 3rd house was accepted in February 2018. Closed end of March 2018.

So nope, no test. My whole process was easy peasy 😁 

[delaney1]

Sounds good! We’ve had mortgages before, but This will be our first mortgage since our financial meltdown years ago, so I’m still a little nervous about any unpleasant surprises.

Actually going to start scouting out prospects near the end of the year since we have two different cities we’re interested in.

[SleeplessinMA]

@CreditInspired

Thanks for the information.  Relocating to Fl next summer so it'll be around my timeline.  Looking for a short term rental while I look.

Brought my balances way down to implement AZEO the end of August and tweak those mortgage scores, I hear they love zero balances except for one account.  We'll see how this goes, anticipating good things 

[CreditInspired]

You’re welcome SleeplessinMA

Yep, AZEO works wonders for scores and LOs love credit profiles with no balances or extremely low min pymts.

Are you moving for the job or retirement?

[SleeplessinMA]

@CreditInspired

Are you moving for the job or retirement?

Retirement, am semi retired and found out my place of employment was just sold, just found out today.  Small storage room job, I don't need to work but it keeps me active.  Been retired since December 2014.