officer contacted me saying that i needed to get some of the stuff on my husband's credit report cleared up. the lady isn't in the office right now and i'd like to know if you need EVERYTHING in your credit history to be paid off before you can be approved for a loan?!?! his accounts that have been put in collection total less than 2000. does the loan officer lady really want us to pay that stuff off? those delinquent accounts were opened up by my husband's mom wayyy back in 1999.
please let me know what you think.
2007-08-28 08:44:46 · 10 answers · asked by vern01 3 in Business & Finance ➔ Personal Finance
if they are from 99 and opened by his mom then no i wouldnt pay those off, and if there less then 2,000 it would probally only bring the score up about 14-20 points depending on what kind of accounts.but also she might be taking you to an FHA lender and they might require that those are paid (i highly doubt they would need them paid if there 8 years old)I would suggest holding off and telling her you dont have the money to pay them, or looking for another loan officer
2007-08-28 08:52:57 · answer #1 · answered by aboryszuk 3 · 0⤊ 0⤋
Look at it from the loan officer's point of view. She is looking to approve a couple for a substantial amount of money. Then she is looking at your history and here are some old debts that are just a few thousand dollars that went into collection. It would make her feel a lot better if she knew that you were starting her loan with a clear history that would not put her loan in more risk. Your troubled financial history is a flag to her that you pose more risk to her loan than if it was clear. So if you were to go back and clean all that up at least you would be on a clear slate when she started your loan. Also with all the trouble in mortgage lending lately companies are tightening down on their loans. Good luck.
2016-05-20 02:20:57 · answer #2 · answered by ? 3 · 0⤊ 0⤋
I think the loan officer wants your husband to pay off as much debt as possible and probably close some credit cards up. If you want to get a loan with lower interest rates, then you should try as hard as possible to clear up all debt before buying a house. $2000 is not a lot of money. It's probably less than your monthly mortgage. You'll most likely need to pay them first since they are sent to collections. These open accounts will affect you on getting a loan. You can try putting the house on your name and have your husband co-sign the house. This wouldn't affect the loan as much as putting his name entirely on the house.
2007-08-28 08:59:21 · answer #3 · answered by Mrs Apple 6 · 0⤊ 0⤋
If at all possible clear it up, it will be more appealing to the loan folks and get you a better rate. The mortgage market is stricter than ever and what your dealing with is income to debt ratios. It is a really tight market so I don't know if this small issue could hold you up, depends on what kind of financing you are seeking, what you have for a down payment, how long you have been employed etc... I suggest you talk with your banker about a non secured loan to pay it off if you haven't the funds at hand. Your mortgage broker would rather see a small monthly payment in it's place.
Good luck on getting your new home!
2007-08-28 08:59:13 · answer #4 · answered by R M 5 · 0⤊ 0⤋
Mortgage rates differ a lot and are based on your credit rating and the value of the home. Before approving your loan, your lender will scrutinize your credit history. There are two types of mortgages according to the type of rate: fixed or adjustable. Consult a mortgage broker or contact the lender directly asking for quotes. This lets you decide between both the varieties of mortgages.
http://lower-your-debts.com/category/Mortgage-Rates.html
2007-08-29 01:49:22 · answer #5 · answered by Pitty T 2 · 0⤊ 0⤋
Yes they want you to clear up all that delinquent credit.
If his mother opened the accounts, why haven't you reported them as fraud? Didn't want to throw Mom in jail? Well, now you have to pay them. Try offering a settlement.
Or you could put off buying that house till those negatives fall off his credit report. When did the accounts go delinquent?
2007-08-28 08:53:10 · answer #6 · answered by bdancer222 7 · 0⤊ 0⤋
The less that is on your credit report the less your interest rate will be. That $2000 could be costing you in the tens of thousands in interest so best to pay it off.
2007-08-28 08:52:34 · answer #7 · answered by Macchiato Junkie 3 · 0⤊ 0⤋
o my goodness your like my twin! our avatars look almost the same. and i asked a similar question a couple days ago! crazy.....
anyway debt does affect your credit report so you have a way better chance paying those things off.
2007-08-28 08:51:08 · answer #8 · answered by Anonymous · 0⤊ 0⤋
yep. they are affecting your husband's credit history, and that history can last as long as 10 yrs. clear up the credit history, and you'll have a better chance with your loan.
2007-08-28 08:50:50 · answer #9 · answered by king_tots 4 · 1⤊ 1⤋
you just asked this
2007-08-28 08:50:07 · answer #10 · answered by ashley! 2 · 0⤊ 1⤋