Will this work to secure mortgage

[kcdawg]

I am planning to purchase house in six months or less.I have cureent middle score of 627.My credit reports have several credit cards that are reporting as settled,all over a year old.I have 3 current cards 2 are maxed out at 1000 each and 1 is at 50%.I have a current mortgage with only 1 30 day 3 years ago,270.00 a month.Also several small medical collections paid and 2 medical at 800 each not paid.I have no other debts.Income at 3100 month without wife,prefer to only use my income becasue her credit is a lot worse.I plan to pay credit cards and mortgage off.Looking for a house of 125000-135000,with 5% down,pmi either financed up front or paid.Reserves of 20,000 and will sell the current house i am living in to restock my savings.Thanks

 

[stroked89coupe]

I would imigine if you were able to get financed that paying off your credit cards in full would be a excellent place to start. The lender may require the collections to be paid as well.

[kcdawg]

I have the means to pay everything off right now,just wanting to be halfway sure that i would qualify.If not i probably would not pay off my current mortgage at this time

[stroked89coupe]

I mean looking at the basic information I think you would qualify income wise. I am sure there would be some underwriting conditions though.

[Brian B The Loan Professor]

On the surface it looks ok - I wouldnt suggest going out and paying everything off until you have had someone look at things closely and run your info through an automated underwriter.

Good Luck

[New2repair]

Where did you get your credit scores from? A credit score of 627 may present a problem. In order to get your credit score higher, here are some suggestions.

 

1) Pay off two of the credit cards, and bring the 3rd so the amount owed is less than 10% of the limit

 

2) Go to the credit forums and 1)research goodwill letters for the collections you have paid 2)research WHYCHATS HIPPA method for the unpaid medical collections.

 

3) You may want to look into opting out, and possibly applying for a mortgage a few months earlier than you want one, to sniff out any dormant collections.