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Medical Bills and Credit in the Home Buying Process
Many clients come to us with the impression that their medical bills do not matter when it comes to home buying. They say that they were told that medical bills “don’t matter” or “don’t count”, leading them to believe that their score is somehow recalculated without the medical bills when buying a home. The truth is they DO count. If they are in collection status, they lower the credit score. They count the same as any other collection, even in the mortgage versions of FICO scores. Of course, what the lender actually means is that they do not count into the DTI, but the impression that a client gets is often incorrect. Medical bills can definitely lower the credit score, even to the point of disqualifying an applicant.
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1 Reply
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Thank you for sharing. Informative information