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Beginning stages of getting approved for mortgage, looking for insight.

Member

Beginning stages of getting approved for mortgage, looking for insight.

Hi,

Me and my husband are trying to purchase a home within the next 6 months. We were working with a repair company that is through the company that we are trying to purchase from. We were recently updated that my husband scores are not high enough. We were initially told that he didnt have enough credit cards to help his credit score so he open 1 extra and I added him as an authorized user on my two accounts. We initially thought that we would be able to dispute items to get them removed but unfortunately nothing was removed from the main report (Equifax). So I'm unsure when it come to negotiating as the last time we did that we paid close the original amount. There are currently 9 collection that they want us to settle but 3 of them the sol has already past. Should we pay the one that the sol has already pass?
10 REPLIES
Contributor

Re: Beginning stages of getting approved for mortgage, looking for insight.

There isn't enough information to really give good advice for your personal situation. What are the collections and balances and when was date of last default?
In general I personally would not rely on cc alone to build score. You need to remove the negs. Do PFD and settlements. The older the account the lower they will settle for. The newer the account the more you may need to pay to settle. Also, some won't delete without full payment but they might. Start by offering a lower payment for a deletion and see if they will go with it. If you can give more info it would help.
For Me Starting FICO 8 Score 4/1/18 EX 599 TU 602 EQ 609
Current FICO 8 Score 6/1/18: EX 620 TU 617 EQ 623
Beginning Mortgage Score 4/1/18: EX 537 TU 592 EQ 578
Current Mortgage Scores 6/1/18 EX 607 TU 601 EQ 613
Hubby Starting FICO 8 Score 4/1/18: EX 505 TU 543 EQ 484
Current FICO 8 Score 6/1/18: EX 581 TU 581 EQ 569
Beginning Mortgage Score 4/1/18: EX 494 TU 512 EQ 548
Current Mortgage Scores 6/1/18 EX 577 TU 598 EQ 582
Goal Score 7/1/18: 640 Across the Board


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Message 2 of 11
Member

Re: Beginning stages of getting approved for mortgage, looking for insight.

Okay, the collections are as follow:

 

Jefferson Capital: $2938 (Personal Loan fell behind after losing job)

Placed for collection: 10/31/2015

Date account was closed: 10/31/2013

Date to be removed: 02/2021 

 

Two Midlands funding:

1. $643

Placed for collection: 03/18/2014

Date closed: 11/12/2013

Date to be removed: 07/2020

 

2. $618

Placed for Collection: 03/26/2014

Date closed: 10/23/2013

Date to be removed:07/2020

 

Financial Credit Network: $180 (Planning to settle this account, School debt)

Placed for collection: 08/09/2017

 

Unifund ccr llc: $337

Date place for collection: 02/26/2016

Date of last payment: 07/14/2015

Date to be removed: 02/2022

 

Online Information Services: $103 ( Will be paying)

Placed for collection: 10/17/2016

 

SCEG: $324 (Old Electric Bill after moving)

Placed for collection: 09/01/2015

 

Vance and Huffman: $122

Placed for collection: 01/26/2016

Date to be removed: 04/2021

 

ERC: $101 (Old Cable Bill from 2013)

Placed for collection: 01/17/2018

Date to be removed: 02/2020

 

Debt from Doctor's Care: $152 (Planning to Settle)

 

We are planning to try to settle a good portion, just unsure about those that the sol had already passed on. Thanks in advance. 

Message 3 of 11
New Contributor

Re: Beginning stages of getting approved for mortgage, looking for insight.

Hi!  So for the Jeffferson Capital Account what was the date of the first missed payment?  You need to find that info out.  Those are the dates you would be using to find out when it will fall of your credit report.  We pulled up my hubbys score so we could buy a house as well.  Be careful with the mortgage company they may try to tell you what to pay off and what not to pay off.  Make sure you hear it more than once before actually paying it.  I was told any accounts over 1500.00 need to be paid in full for us to get approved for our mortgage. We were told if we did settle to make sure they would put paid in full could not be settled on the credit report.    What we did to pull his score up was a secured credit card for 500.00 it pulled up his credit between 40-75 points for each credit bureau.  Do not apply for any credit cards that will pull credit!  I used myfico.com and used the simulator and at the end had brought my hubbys scores up 100-150 points.   So if this was my hubbys credit report I would start with Jefferson Capital.  That one will have to be taken care of to get approved for a mortgage.  Did the mortgage company give you any advice to where they would like you to start? 

Message 4 of 11
Member

Re: Beginning stages of getting approved for mortgage, looking for insight.

We have a updated copy of my husband credit report but it doesn't show when the first date of missed payment was except that it was closed in 2013. They want us to pay or settle that account but I see the sol has already pass. I know we will be paying down the other accounts it's just some may not get paid at the moment because of finances. His initally score in Feb 2018 was Equifax 470, Transunion 451 and Experian 534. After trying to disputes accounts his updated score as of June 2018 are Equifax 494, Transunion 491 and Experian 550. The was able to get a charge off removed off his experian but the others one didn't remove it. Would send dv letters help to findout more information about accounts or is that the same as disputing through a credit bureau? At the moment he has 5 cc open, 1 reporting at 12%, 2 reporting at less than 5% and 1 reporting at 92% but will be paying that one down. He also has a joint account with his mother that is showing 58% utilization rate. Two of the cards are new cards one is 3 months old and the other he is an authorized user as that is my card that is 1 month old. We know that we have a long road ahead of us as him losing his job years ago has put him in a situation to where he has a lot of collection to pay off. We also have a old t-mobile bill through convergent outsourcing that was recently bought by them, this account is from 2013 but it's showing as a new collection. Any advice on how we should go about in helping to rebuild his credit will be appreciated. Thanks in advance.

Message 5 of 11
New Contributor

Re: Beginning stages of getting approved for mortgage, looking for insight.

Yes you could start by sending DV to each of them.  Also look up the time frames for your specfic state.  They can vary by state.  SOL is the date that they can no longer take you to court and sue you. It can still stay on your credit for up to 7.5 years.   So for example the verizon bill can be sold to another collection agency but the old collection company who held it first would be deleted off your report.  The new collection agency and the orginal tradeline can remiain on your credit report for up to 7.5 years.    Work on sending DV out and paying down credit cards for now.   I would not open up any new accounts. 5 credit cards are plenty.  Paying down the credit cards he does have should help his score a little bit.   You could also try calling the other smaller collection accounts and see if they will delete if you pay in full.   

Message 6 of 11
Member

Re: Beginning stages of getting approved for mortgage, looking for insight.

Okay, I will be trying to settle the more newer collection as I feel that it would benefit a lot. The mortgage company told me to ask for a pfd or settle if they won't delete. I feel that finding this forum has been very helpful when trying to rebuild our credit. When we initially started we was told to pay off an old cc account(Wells Fargo Secured Card) we had but we wasn't aware of ask for a pfd. Since we already paid it and it shows that it's paid charge off, can we send a letter and ask them to delete the tradeline or would we have to wait for it to fall off?

Message 7 of 11
New Contributor

Re: Beginning stages of getting approved for mortgage, looking for insight.

Yes you can send a goodwill letter asking them to delete the tradeline.  Again I want to mention to make sure that you are allowed to settle with the collections and still be able to obtain a mortgage.  Some mortgage companies that is a No go.   I know you dont want to pay the bigger baddie that is older but you should check with the mortgage company.  We had smaller ones we didnt have to pay to get our mortgage.  Anything that was over 1500.00 HAD to be paid before we closed on our house.  First DV them and work on paying down the ones that are current credit cards.  

Message 8 of 11
Member

Re: Beginning stages of getting approved for mortgage, looking for insight.

Okay, I figured since it is older that we may be able to settle for less. Would that be a good idea to try as coming up with that amount of money isn't going to be anytime soon. Thanks for the advice. Will work to clear the small ones and see what mortgage company say about the others. Another question is it better to have a realtor when interested in buying a home?
Message 9 of 11
New Contributor

Re: Beginning stages of getting approved for mortgage, looking for insight.


@Armcneil wrote:
Another question is it better to have a realtor when interested in buying a home?

Yes. The seller will pay their fee if you are buying a resale house and the builder will pay their fee if you are buying a newly-built house. So you will not be the one paying them. It's a free service for you so why wouldn't you use one? A realtor can show you what dollar amount similar homes have sold for that have recently been sold in the same neighborhood so they can help you structure your offer so that you don't wind up overpaying for the house in the current market. They can also handle all the million little weird problems and situations that can come up along the way so that you have a smooth ride up until and during the closing. It will be much easier for you if you use one.

Message 10 of 11