Hi all, I am being relocated by my company this summer to another state, and I want to take this opportunity to buy a house with my partner. My credit isn't perfect. I just paid off about $14,000k in debt, and still have about $10,000 so that's a good improvement. I have a strong credit history other than a charge-off from a few years back that I have yet to pay. My income is very high, about $6500 before taxes every month. Do you think that having just that one charge-off on my credit will prevent me from getting a home loan? It's never shown up as a collection at this time, simply the charge-off. My partner will be on the loan as well. We may or may not have any money down. At this time I do not know my updated credit score. I'm waiting until the end of this month to pull my report again once my CC company updates having paid off the $14k. Thanks in advance all.
It would probably not preclude you from a mortgage with otherwise strong income and credit history but, keep in mind an unpaid charge off hurts more than a paid chargeoff. If it is for a small amount than I would try a payment for deletion route. That being said if the charge off is from a few years ago and you are indeed worried about it then perhaps a dispute or validation letter may remove it. But I also would guess that there may be 2 derogatory remarks on your report, the chargeoff from the OC and one from the collection company. If you don't want to open that can of worms then you can do that as well. The older it is the less likely they will be able to document it.
No, it won't stop an approval. It generally won't have an effect at all providing your scores are sufficient. Be careful of paying it if it's over three years old. Also, if they're not reporting it every month it can cause more damage than what it's worth if you do pay it.
Is the "Charge Off" showing a balance? If so, the mortgage holder would require this to be paid before approval.
I agree with the above comment. As long as there is a balance in the charge off section, you will have to pay it before getting approved. I think you can just apply for a larger loan to do this. Consolidation is always an option!
