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| *Loan,banking and credit>>>credit score |
My Fico score is about 680 with all accounts closed/paid, 1 credit card open, 1 collection for $640. Wife Fico |
is 720. For a home mortgage what option do I have to improve my score? Should I negotiate the collection for a lower amount and pay it? Will the account remain as collection even if paid? Will it increase my score or lower it ? Will I get a better loan if my wife is in the loan? I'm planning on 20% down payment. Forget about the collection account, it could hurt your score if you pay it. Lender may not care. Negotiating it will show SETTLED for a lower amount and could cost you in income tax.... If the down payment funds are in a joint account, and have been for 60 days, if your wife has a job, she can probably go stated income just have her on the loan and both of you on title. She will need a job to verify, with probably at least 2 years there. If she has no job, you will need to use your score, assuming that you have a job 2 yeasr+. Too many unknowns to give you exact advice, such as Will you still have financial reserves after using the down payment ? Can you go full doc on your income ? etc.. ******************************... Jay,, Forget about the collection, it won't raise your score. A full doc 80% loan with your score now will still be very good. What state are you in ? Having closed or paid off credit cards doesn't help your score. Paying payments every month (in full or minimum) is what helps your score, The problem is, with your accounts now closed, there is nothing for the credit report to "grade" in order to add points to your score. Closing out the accounts was a mistake, and most-likely lowered your score. There are even loan officers in the industry that still things that helps....it's a myth. Most underwriters usually require a minimum of 4 trade lines in order to even approve someone for a mortgage...b/c this is your only proof that you pay your bills. Go ahead and pay the collection...it is never to your benefit to leave those unpaid....underwriters could care less if it's settled or not as long as it's paid...but at $640, depending on your score, you may not have to pay it right now. 11 years of mortgage underwriting experience. I think you will get it. If your wife's name is there it will be far better. But dont go for any mortgage lender . Try to find those who are BBB registered and are reliable. You fill online forms and get free quotes from these companies so just try to get some score from few different one and compare them and then go for one. To know more you can visit http://www.easyhomeloans.blogspot.com... |
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