How conventional underwriters treat collections, when they must be paid, and workarounds. The 2 Mortgage Guys at Luminate Bank, lending nationwide.
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Often yes. Conventional underwriting looks at the type, age, balance, and status of collections — not just whether any appear on your credit report. Some must be paid; others can remain open with explanation.
Not every collection account is treated the same way on a conventional file.
Some items need payoff or a clear plan before clear-to-close.
Bring clarity before underwriting starts asking questions.
We review credit early so surprises do not show up at the last minute.
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