Reverse Mortgages Will Help 62 and Older Stay in Home Create Cash Flow

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While some collection agencies will agree not to report medical collection accounts that are paid off immediately, others refuse to do so. And some bill collectors will use the threat of credit report damage to try to get patients to pay up, even if the bill itself is disputed.


 

Here are some interesting myths and facts about medical collections! 


Myth: As long as I am making payments on a medical bill, it can't be sent to collections.

Fact: Making payments won't necessarily keep the bill out of collections. Even if you are making regular payments, they need to be a certain amount to prevent being turned over. Of, if you are under a payment arrangement but are late (even by just a few days) your bill may go to collections. If you leave any balance unpaid, there's a good chance it will go to collections.

 

Myth: When it comes to credit scoring, medical accounts are treated differently than other types of collections accounts.

Fact: The credit scoring formula does not distinguish between medical and non-medical collection accounts. All collection listings are derogatory and will affect your credit score the same way as other collections. Some creditors have been known to be more lenient when it comes to medical debt, even though the credit scoring formula will not.

 

Myth: I'll need to pay off medical collection accounts to improve my credit.

Fact: Paying your bills is the responsible thing to do, but don't do it expecting drastic changes to your credit score. Collection accounts damage your credit score, paid collections aren't as detrimental but they're still negative. The negative listing can stay on your credit file for up to 7 years.

Bottom line, if you want to be ready to buy a home or refinance, call me and I'll help you with credit, loan type and walk you through it.

Posted by Anne James on September 17th, 2021 5:19 PM

Getting pre-approved for a home loan purchase doesn't have to cost you more than 4 FICO points for a 'hard inquiry.' Once you've let your loan broker or loan officer run your credit, you should know your real FICO score-not the Credit Karma or credit card FICO reported so often inaccurately from a Residential Mortgage Credit Report that should be handed to you in a two-page summary and reviewed for issues with your 'first-choice broker' or lender.
After you know your RMCR FICO score, the middle of the three scores and the lowest middle of two or more borrowers, you can shop rates confidently by comparing rates for the loan on the same day with two or three lenders. The is rates change daily so be sure and ask for your LOAN ESTIMATE from the lenders on the same day. 
About running that RMCR report with your 'First-Choice' lender: Get the FICO scores and review or choose another lender. The rest should go off your Consumer two-page FICO scores you are entitled to recieve.
Happy hunting and remember, you have only 14 days to recieve full lender approval once you make a successful offer on a home so get that pre-approval first!

Posted by Anne James on November 6th, 2018 9:07 AM
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