Jordan said
I had been making a big effort to pay off all the bad stuff on my credit report. This friday I would have paid off every thing. I called to find out when the account will be deleted from my credit report but was told that it would take 30-40 days to report that it has been paid (which I already knew), but that it won't actually come off my report until 7 years (can they really do this). I also have a lien which I paid off but that too will take 7 years to be deleted (although showing paid). All my other accounts are in good standings. I have one credit card which I hardly use (I have it just to show a revolving account). What are my chances of getting approved for a 170,000 house loan?my score now is 620 so after 30-40 days, it should improve

Xavier said
Your credit score will improve once it shows accounts have been paid. Those accounts have to stay on your credit report for 7 years, good, or bad. Actually, having some credit that showed payments and having an open balance both add points to your credit score, just like that one credit card you have. It would be best if you charged your internet or gas purchases to it so you would show paying off a balance every month.Now, regarding your mortgage. Your credit score right now is the minimum it has to be to get approved at a bank that will still be around in 5 years. The rate you are quoted will decrease as your credit score increases. Also, if you can increase your down payment, you will usually qualify for a better rate and won't have to borrow as much, thus reducing your mortgage payments two-fold (three fold if you paid 20% down and thus would not be required to purchase PMI), which will also increase your chance of getting the loan because then you would need a lower salary to make the lower payments.I used the website below to calculate how much you would have to make assuming you had paid off all your debt, your taxes totalled 3%, your insurance costed 1.5%, you came up with $10K down and borrowed $170K to buy a $180K house. Another website provided the rate with your credit score of 7% (6.94 actually, but I rounded up). It says your total payment with escrow for taxes and insurance (homeowners, windstorm, flood, and PMI) would be $1806, requiring you to make from $45,160 to $53,224 a year, depending on their maximum allowable percentage of income committed to a house payment (the website used 28-36%, but I used 28-33% to be more realistic because I think 36% is rare and I also had to increase the taxes and insurance to realistc levels).

Anthony said
Well, the 7 years is true. Only Time will bring your score up... I finally paid off all my debt at the beginning of this year, and each month my score has gradually increased. Now I'm at 798! and it's been about 8 months... I got approved for a 68k loan. So I say just wait it out... Wait a year as of the day that you paid EVERYTHING. If you stay off debt, you should go into the 700's in a year, and you'll get the approval.

Adam said
I'm going to assume UK ..To get a £170k Mortgage you will need to be putting down a Deposit of about 20k ... and you will need to show an annual income of £40k or more ..The higher the Deposit & the higher your income, the less the problem ..The more outstanding Credit Card debt / other loans you have, the greater the problem ..

evenouji said
you have 2 do job for yr family n dont beg till 2 r in very bad situation

Trishiababy said
That is a question for a mortgage person. It might be kinda hard even though you've paid those stuff off, and seeing you just did so recently might be a red flag to them. Yes, deliquencies can stay on ur credit upto 7 yrs. Once you pay them off may be write letters and see if they can be removed?Somethings that might make you more mortgage approvable is if you have at least 5-20% down, have a savings account and all that. Talk to your local bank and let them run the numbers for you. Or, you can try applying for a mortgage online just to see not only how much you'd be approved for but at what interest rate. Also try FHA financing.Good luck!

prowactive said
I am a mortgage broker.It will depend on what is showing on your credit file as to whether or not you will get accepted for a mortgage.If you have Defaults which show as D or County Court Judgements or any missed payments which will show as 1 2 3 etc then you are unlikely to get approved with standard high street banks.Anything you have registered against you stays on your credit file for 6 years, so it will carry on effecting you.There are ways in which you can improve your credit rating, and there will be certain lenders that will accept you, but not all of them.If you want some free advice go onto my website elitemortgagesonline.co.uk and put your details in get a quote and I can help you.Carol