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Reviewing a recent post reminds me that once you are considering purchasing a home, you should do nothing that affects your financial picture without reviewing it with your loan officer. That’s in advance not after the fact as the Dr that bought a Jag.
That includes any change.
Making a change in your financial picture CAN include not paying off ancient collection accounts. A colleague of mine paid off a many year old collection account a few months ago and actually watched her credit scores drop by the minute! Why? Because paying off the old collection account reactivated it causing it to re-appear on her credit report. My advice to clients who want to clean up their credit is to talk with the mortgage officer for advice on which accounts to ignore and which to pay off first!
Bonnie, St. Paul, Minnesota
Good point Bonnie, thanks. I agree with this. Lar