Jun
8
Emily
My husband had about $10,000 worth of debt in collections. We paid about $6,000 off so far. Some of collectors were willing to “pay for deletion” and some would just do “paid in full” or “settled in full”. Will this help his credit situation when it comes time to apply for a home loan? How much time before he can try to apply for a home loan? My Fico score is 719, but we still need his income to qualify for the loan amount we want.
Please advise
My husband had about $10,000 worth of debt in collections. We paid about $6,000 off so far. Some of collectors were willing to “pay for deletion” and some would just do “paid in full” or “settled in full”. Will this help his credit situation when it comes time to apply for a home loan? How much time before he can try to apply for a home loan? My Fico score is 719, but we still need his income to qualify for the loan amount we want.
Please advise
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3 Responses to “Will my husbands bad credit effect us buying a home?”
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Well… first of all, that’s great you’re paying down his collections. The quicker you get them paid off, the better that will look when you go in to ask for a mortgage. Now the main the to remember is that a mortgage as opposed to a personal loan or credit card application focuses more on your income rather than you credit score. That doesn’t mean they don’t look at it, but they don’t weigh on it as heavily as your income. They need to know first and foremost you have the resources to pay for the mortgage every month. The best thing to do is head into your bank, and talk to a mortgage specialist. They will check out your credit history, income, etc., and look over your collections, and tell you what the deal is. I guarantee you will have to pay those collections off first, and the sooner the better. But they will be able to say “Once you pay your debts, based on your income, we will be able to pre-approve you for….. ” And that will better answer your questions than what any of us could tell you on here. But rest assured, you have taken the right steps. Pay off those collections, and then head into the bank and I’m sure you will get good news. Hope that helps! And good luck!
with them being reported as paid in full will help, but if they show that they were actual collectors and not just very very late it will hurt. The best place to apply for the loan would be your normal bank. They can see what your financial situation is (checking/savings etc) and more willing to offer better loan amount/rates.
Yes and no……it just depends where you go for the loan. There are companies out there who will help you buy a home with not so good credit, but your interest rate will be high. But it seems as if though you may be handling the situation well if you are trying to pay it down. They may even tell you to get some more stuff paid off and then apply again later, we were told that. Good luck, Ive been in the same situation, and it kind of sux!