Trying for a Mortgage/ VA Loan

[Shawn19AL]

Tried to get a mortgage 6 months ago and got all the way to closing and the company was vague on the reasons why we couldnt go further. I had a lot of collections that I was paying off. It was a lot of back and forward. 

Well fast forward 6 months now , my mortgage scores are 650 Experian , 626 Transunion and 645 Equifax. Different team, better VA Loan officer who is on the money and willing to talk to me and not at me.  Submitted my paperwork and waiting for preapproval.  My mortgage banker called me yesterday to get my payment information about the current collections Im working on. He said I should hear something today from the underwriters but on his end it looks good.

If it doesnt go well, I will know exactly what I need to do.  Kinda nervous but I realize that I can always continue to approve if they deny me.

[donkort]

I would say the vast majority of Loan Officers put "paying off collections" as a condition of final mortgage approval.

Your scores, by themselves, are good enough.

Think of it this way:  If they were pulling FICO 9, and you paid your collections, you would certainly have higher scores.  Because FICO 9 ignores paid collections.

[Anonymous]

When I got to the last few days of closing I was told i had to pay off all open collecions. I think you should plan on having to pay off all your open collections before they will approve your loan. Once you get it approved, make 6 on time payments and then refinance through the VA Interest rate reduction refinancing loan if you have a hight interest rate. Mine was 6.1% and its about to drop to 3.375% because if the VA loan irrrl.