Medical collections are one of the most common concerns I hear from homebuyers.
The good news is that medical collections are often treated differently than other types of debt, depending on the loan program and current lending guidelines.
Before you assume a medical collection will prevent you from buying a home, let’s take a closer look.
Will Medical Collections Prevent Me From Buying a Home?
Not necessarily.
Many borrowers with medical collections are still able to qualify for a mortgage.
The impact depends on your overall financial situation, the loan program, and current lending guidelines.
Should I Pay Off My Medical Collections?
Every situation is different.
Before paying off medical collections, it’s a good idea to talk with your lender.
Depending on your circumstances, paying them off may or may not improve your ability to qualify for a mortgage.
What Should I Do First?
The best first step is to have your credit reviewed by a mortgage professional.
I’ll explain how your medical collections may affect your loan options and help you determine the best path forward.
Ready to Get Started?
If you have medical collections and you’re thinking about buying a home, don’t assume you’re out of options.
Let’s review your situation together and discuss what loan programs may be available.
Complete my Secure Online Application or give me a call. I’d be happy to answer your questions and help you understand your options.