Hi, I just found this website and it looks like I can learn a lot from it. I just got a preapproved loan for a house (borrowing 190k). My credit is not that great (I believe my median FICO score is 616). One of the things I need to do before closing is payoff one collection agency and a revised credit report must show a zero balance on that account. I've paid off the collection agency this morning, but I hear that the change in my credit rating will not be reflected in my credit report until several months from now? It was hard enough getting the preapproval, but it would be bad if I do not get a bank loan commitment! What should I do in regards to the paid collection agency? Should I get a letter from the collection agency stating my debt is paid? I am real worried something is going to go bad and I would be without a home! Thanks in advance, spm23
see if the lender can do "rapid rescoring"...the lender will get the proof to the bureaus and have new reports within a few days. not all lenders will do this, so don't get mad if they can't. even if they can't the bureaus would need to correct it within 30 days if you send a dispute letter w/copy of proof paid.
speaking from an experienced loan officer here and current mortgage broker, I advise all of my clients anytime they pay any collection account off in full to receive written documentation of doing so, underwritng is going to need to see it regardless if the CRA has not had itupdated. Get it for the sake of the loan officer having to do more work than necessary on his/her end, and it will make the process flow that much better to your end! if you have any other questions email me, thanka! brad @ allied home mortgage capital corp. boot21_2000@yahoo.com
K heres the deal...make the broker/lender do the rapid rescore. Most, heck ALL lenders can rapid rescore....and most dont even know how or that they can do it. It is simple....every credit company that we use to pull the reports has some sort of rapid rescoring. What you need is a letter from any account that you want updated (on official letterhead) stating the status. This will take 24-48 hours to get your credit updated. The cost is 25 dollars normally per tradeline per EXP, TU, or EFX......so thats 75 dolalrs a tradeline IF they are reporting on all three. This does NOT work to update BALANCES...but rather DELETIONS and updating status. I say make them pay for it because more oftem then not your credit knowledge that you teach them and them learning how to use this powerful tool for future borrowers warrants you getting a "freebie" Good Luck.
When we refinanced in 2000 I didn't know a CA was reporting on our reports for something like a 50 long distance bill I never paid. I was required to pay it in full and get a letter from the CA that it was paid in full. That is all the lender required. It may take awhile to clear up on your credit report. I would think a letter would be ok but I would ask your lender.
Same here, a letter worked for me. Had a balance from an old aptartment with a roommate. Lender only required a letter.
Thanks for responding to my post guys. I got the letter and will fax it to the bank in the AM. Thanks again, Spm23
