Hi Within the next year I would like to purchase a home. My first. About 7 years ago I had some credit problems and when I rcvd a credit report a week ago & I saw most of the bad credit has either fallen off or will fall off by the end of the year. Is it true that if you are looking for a mortgage loan they will pull your credit for more than 7 years and since the amount is over $50,000 they will see all my past problems? I have been really good with my credit since my problems back in 1993 and I have not been late on a payment since I got back on my feet (I was in bad shape for about 6 months in 1993). I haven't applied for any new credit since I had my problems, but I have kept up several dept store credit cards, car payment, school loans and a Visa card. In December of last year a friend of mine was working as a temp for a mtg company and she pulled my credit. My score at that time was a 617 (Equifax) and that had 1 unpaid collection, 2 charged off accts & 1 judgement. By November of this year I will only have 1 collection acct showing on my credit report. Does anyone have a guess on what my credit score will be? Will the mtg companies give me a good loan w/ my past problems? My past credit problems total up to $1,800 What is my best course of action to make sure I get a good rate when I apply next year? How much money should I put down on a house? My friend said 20% because I would avoid PMI fees. (She thought she heard a loan officer say it was 20% she wasnt really sure and its been a while since she worked there). Thank you Jenny
RE: Can I Get A Mortgage w/ pa Morning Jenny, I can't help you with all your questions, but i'll try with the others. 1) They won't pull your credit for more than 7 years back. What they will do is pull a consolidated report from all three CRAs. 2) Your friend is correct about putting 20% down as far as avoiding the additional charges for PMI every month. However, 20% is not mandatory, you can and will be able to get a loan put less than 20% down. 3) What will your score be ~ can't even guess at that, especially since all three CRAs probably have a different score and from what i understand the scores are known to fluctuate. My suggestion would be for you do monitor your reports before you go to the loan officer. Pull your reports (all 3) near the end of the year and verify that all that you thing should drop off has and if it hasn't dispute the items. Good Luck!! I don't think you will have a problem at all.
RE: Can I Get A Mortgage w/ pa Hi Kim Thanks for the reply! Do you think I will have any problems with the collection acct? I will still have 1 collection acct for $150. I'm thinking about putting a 100 word statement on to explain my side. Do you know if these really help? Thanks Jenny
RE: Can I Get A Mortgage w/ pa I have about 8 collections on my report. I've paid them all within the last 18 months. I was able to get an FHA mortgage loan. I don't know if a statement will help or hurt you. Talk with your potential lender and they will tell you exactly what you need to do in order to qualify for a loan.
RE: Can I Get A Mortgage w/ pa Actually, according to the FHA regulations you needn't of bothered paying off many of those collections, particularly if they were over 3 years so you can imagine how little relevance something over 7 years would be. You see, FHA is the only mortgager than doesn't follow the extremely insidious policy of Cross Collections - wherein mortgage companies and lenders INSIST all items on a report to be paid before granting a new loan, regardless of the validity the age or the amount of the claim. It makes it very clear to whom their loyalties lie.
