A friend of mine is relocating and needs to sell his home in one state while buying another in a different state. His current FICO (3?) score is 721. First, I'm wondering if that score will be good enough to get a decent mortgage rate.
Second, he has a couple of baddies from two student loans he co-signed for his kids. One is showing as charged off entirely, and the other is showing one +60 and one +90. Frankly, I'm surprised his score is as good as it is with this negative information on it.
I told him to pull his free reports and I'd go over it with him next week. I figure it can't hurt to first at least try filing disputes on all the negative information and see if the CRA can verify them. What's he got to lose?
Lastly, I'm going to help him write a letter of good will to the creditors and see if we can get anywhere with that. I've already told him to pay his credit cards in full off his statement balance, which he's been doing for the last 3 months (leaving a couple dollars). His total credit line is roughly $18k. His average age of accounts is 20 years. He has 2 inquiries in past two years, and everything else looks good.
Does anyone have any other advice on how I can help him, or experience with student loan debt? His kids screwed him and I feel badly. But he did co-sign and I'm not sure there's anything he can do about it. I'm meeting with him next week and would appreciate any advice from the experts here on what else he might do. I'll update if I find any further info out.
Thanks for the advice everyone!. Especially for pointing out that having an open dispute can delay mortgage approval. I think he'll be fine. He's never missed a payment on his current mortgage, is well in the 700s and will have a decent income to expense ratio.