I immediately paid the collection and for some reason it did not effect my loan pricing like it may have today. I was also able to eventually have the collection company remove the collection from my credit history but that was not an easy task.
Many lenders today are now required to re-pull credit just before closing to verify if you have opened any new debt so it is possible that it could show up. I think in your case it probably will not but you will want to look at your credit and monitor it.
A free way to do this is at the website http://www.AnnualCreditReport.com (not Free Credit Report.com). This site is run by the 3 major credit bureaus and you can pull your credit for free once a year from each bureau. Also http://www.CreditKarma.com is a good site. That site is run by TransUnion (one of the 3 credit bureaus) and you can pull your TransUnion score anytime for free. The pulls do not count as inquiries either. You can also receive notifications if collections or inquiries show up on your report with that site as well.
Hope this helps.
REALTORÂ® | Mortgage Broker
Austin Real Estate Pros | 360 Lending Group
o 512.669.5599 m 512.633.4157
firstname.lastname@example.org | http://www.AustinListed.com
Try not to stress yourself out, like anything in life that comes your way, do what is necessary to correct the problem so you can move past it. BTW, the debt does appear to outside the Statute of Limitation for the State of Texas. You could also take that course of action with your Loan Officer. Hopefully they understand the Texas Civil Codes and consumer protections with regards to uncorrectable debts.
Best of Luck!
It should not hit the report if you paid it.
As it is 2008 it should have already been on the report by now... NO sweat.
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We just had a client in our office that had a collection bill hit, bringing her score from 640 (the mininum for a conventional loan) to 632 and as a result she is not currently able to get the loan. She paid the collection bill that same day but it did not matter. We are currently having her debt paid down to change the score for the next month cycle.
So long story short, if you are on the border, it can be bad, if you aren't it shouldn't be too bad; all depends on your credit score. Let me know if you have any further questions. Good luck!