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Need Counseling - Applying for Mortgage (Hopefully) SOON!

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dannyb407
Contributor

Need Counseling - Applying for Mortgage (Hopefully) SOON!

Hope everyone is doing well. I want to kind of put myself out there and want some opinions/recommendations on what moves to make immediately, as I was just notified by our landlord today that he will be selling our rental and we need to be out of here by January.

 

These are the scores that Myfico says are the most currently used in Mortgage lending:

My Equifax Score 5 as of 5/2 is 631

My TU Score 4 is as of 5/2 is 606

My Experian Score 2 as of 5/2 is 601 (Per Capital one it's currently at 636)

(Side Question: Why are these scores the lowest out of all the scores? I have close to 700 scores on some of the other versions)

 

My wife has much higher CS', closer to 700 across the board. Would her higher scores count? I'm 100% of the income in our household, but we want to apply jointly.

 

Here's my debt:

$1100 Medical Collection as of 3/5/20

$882 Medical Collection as of 6/19

$500 Collection as of 11/13 (paying this off this week)

$1,200 verizon collection from a co-signing gone wrong as of 2/20

$1,000 credit card collection 

$4,200 student loan debt (Current standing)

 

As I type these out, I'm so mad at myself for some of this stuff, but I want some opinions on what you guys would take care of first, and how. 

 

I can probably take out a personal loan for $5k (Don't want the credit inquiry though) and pay all of the collections off.

Take a hardship withdrawal from 401k (Penalties)

Borrow money from parents (LAST RESORT)

 

Any advice is strongly appreciated. 

 

 

 

13 REPLIES 13
Girlzilla88
Valued Contributor

Re: Need Counseling - Applying for Mortgage (Hopefully) SOON!

I'm glad you are checking your Mortgage Scores, honestly if you could get a loan to knock out your CO and get them REMOVED (not paid/satisfied I mean OFF) in the next couple months that will help a LOT with yours but if you are looking to go jointly they will still consider your information too Smiley Happy     For Mortgage Scores a good middle score to have would be around 650 if possible but people have been helped below that even it also depends which type of Home Loan but I definitely wouldn't touch your Score (inquiries/apply) at least 3 months before apping for your Mortgage and whatever you do do NOT touch your score for ANYTHING until everything is DONE DONE and you have your keys in your hand for your home Smiley Happy







Message 2 of 14
sjt
Senior Contributor

Re: Need Counseling - Applying for Mortgage (Hopefully) SOON!

What collection agencies are handling your collections? There are a growing number of collection agencies that are deleting after settlement. Also, regarding your 401k withdrawal, have you considered a 401K loan?

American Express: Platinum Charge, Optima, Business Gold, Delta Business Reserve, Business Cash, Business Plus
Barclays: Arrival+ WEMC
Capital One: Savor WEMC, Venture X Visa Infinite
Chase: Freedom U Visa Signature, CSR Visa Infinite
Citibank: AAdvantage Platinum WEMC
Elan/US Bank: Fidelity Visa Signature
Credit Union: Cash Back Visa Signature
FICO 08: Score decrease between 26-41 points after auto payoff (11.01.21) FICO as of 5.23, EX: 812 / EQ: 825 / TU: 815
Message 3 of 14
dannyb407
Contributor

Re: Need Counseling - Applying for Mortgage (Hopefully) SOON!


@sjt wrote:

What collection agencies are handling your collections? There are a growing number of collection agencies that are deleting after settlement. Also, regarding your 401k withdrawal, have you considered a 401K loan?


Commonwealth Financial -

Preferred Collection & Management-

Credit Protection Association-

 

Message 4 of 14
dannyb407
Contributor

Re: Need Counseling - Applying for Mortgage (Hopefully) SOON!


@Girlzilla88 wrote:

I'm glad you are checking your Mortgage Scores, honestly if you could get a loan to knock out your CO and get them REMOVED (not paid/satisfied I mean OFF) in the next couple months that will help a LOT with yours but if you are looking to go jointly they will still consider your information too Smiley Happy     For Mortgage Scores a good middle score to have would be around 650 if possible but people have been helped below that even it also depends which type of Home Loan but I definitely wouldn't touch your Score (inquiries/apply) at least 3 months before apping for your Mortgage and whatever you do do NOT touch your score for ANYTHING until everything is DONE DONE and you have your keys in your hand for your home Smiley Happy


Thank you, I would really like to be closer to 675+. I'm with you, I feel if I can get some of the collections completely removed, the score will go up quickly and less explaining to do at during application process Smiley Happy

Message 5 of 14
dannyb407
Contributor

Re: Need Counseling - Applying for Mortgage (Hopefully) SOON!

I'm currently paying an open 401K loan as well that I took out last year for $2k. Unfortunately the loan option isn't available as I'm currently paying it off via automatic withdrawal.

Message 6 of 14
sjt
Senior Contributor

Re: Need Counseling - Applying for Mortgage (Hopefully) SOON!


@dannyb407 wrote:

@sjt wrote:

What collection agencies are handling your collections? There are a growing number of collection agencies that are deleting after settlement. Also, regarding your 401k withdrawal, have you considered a 401K loan?


Commonwealth Financial -

Preferred Collection & Management-

Credit Protection Association-

 


Commonwealth does PDF. 
Here is a thread about Collection companies that will do a PDF:
Collection Companies that do PDF 

American Express: Platinum Charge, Optima, Business Gold, Delta Business Reserve, Business Cash, Business Plus
Barclays: Arrival+ WEMC
Capital One: Savor WEMC, Venture X Visa Infinite
Chase: Freedom U Visa Signature, CSR Visa Infinite
Citibank: AAdvantage Platinum WEMC
Elan/US Bank: Fidelity Visa Signature
Credit Union: Cash Back Visa Signature
FICO 08: Score decrease between 26-41 points after auto payoff (11.01.21) FICO as of 5.23, EX: 812 / EQ: 825 / TU: 815
Message 7 of 14
dannyb407
Contributor

Re: Need Counseling - Applying for Mortgage (Hopefully) SOON!

Called Commonwealth financial and got PFD!! 3-4 weeks before it gets deleted!! On to Preferred Collection!

Message 8 of 14
FireMedic1
Community Leader
Mega Contributor

Re: Need Counseling - Applying for Mortgage (Hopefully) SOON!

Congrats.


Message 9 of 14
sjt
Senior Contributor

Re: Need Counseling - Applying for Mortgage (Hopefully) SOON!

Congrats! Keep us posted on the others.

American Express: Platinum Charge, Optima, Business Gold, Delta Business Reserve, Business Cash, Business Plus
Barclays: Arrival+ WEMC
Capital One: Savor WEMC, Venture X Visa Infinite
Chase: Freedom U Visa Signature, CSR Visa Infinite
Citibank: AAdvantage Platinum WEMC
Elan/US Bank: Fidelity Visa Signature
Credit Union: Cash Back Visa Signature
FICO 08: Score decrease between 26-41 points after auto payoff (11.01.21) FICO as of 5.23, EX: 812 / EQ: 825 / TU: 815
Message 10 of 14
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