Credit Score in Augusta>Question Details

jgb2675, Home Buyer in Augusta, GA

Moving to Augusta GA. Must a collection account be paid off before qualifying for a home loan?

Asked by jgb2675, Augusta, GA Wed Jun 12, 2013

My wife has a mid credit score of 641. She has one collection on her credit report that is $4,000 and over two years old. That is the only collection on her credit report. Does this collection have to be paid before qualifying for a home loan? If not is there any one that can help my wife qualify for a home loan in Augusta GA.

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5
Lidia Harris’ answer
I recommend you get with a good mortgage loan officer and have them review your credit and advise you of your options. This will include credit score, type of loan eligibility, what you should and should not pay off since something’s on your credit can be overlooked by a lender. and most of all how much (price) of a home you qualify for.

Great question.

Lidia Harris
Broker
LNH Realty
706-755-2335
lharrisrealestate@comcast.net
0 votes Thank Flag Link Thu Jun 13, 2013
Really depends on the type of loan and the lender.
A score of 641 is usually good for a VA Loan and possibly FHA depending on the lender.
A score should be higher if a conventional loan because of the Private Mortgage Insurance requirements. You might not have to pay off the collection if you can show a history of making payments on the action. Since I am not a lending professional, these are questions best answered by them. Give me a call or email and I will be glad to share the names of some lenders so you can shop around for a loan. I would also be glad to help with your home buying adventure once we make sure you are qualified. Having a prequalification letter is key to making an offer on any home in the Augusta area. And the fun begins.... Debbie

Debbie Franco - Realtor, CNAS
Better Homes & Gardens Real Estate - EP
debrafranco@bellsouth.net
(706) 495-7181
0 votes Thank Flag Link Wed Jun 12, 2013
The larger the unpaid balance and the more recent the account is, the more likely it will be required to be paid in full. The those factors play into whether or not the creditor might file a judgment against you which will impact title position to a mortgage. The underwriter has to evaluate the entire picture of the loan in making that decision.

If you are looking to purchase a property, working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your mortgage options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
0 votes Thank Flag Link Wed Jun 12, 2013
The better the credit score the better rate you get, so paying helps but only a lender will be able to answer the question for sure once they see the whole picture of your credit.
0 votes Thank Flag Link Wed Jun 12, 2013
Probably, ask your lender. They will know for certain.
0 votes Thank Flag Link Wed Jun 12, 2013
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