Credit score is 763 but I have a derogatory item on my report from a medical bill from 6 years ago that totals 6k. How will that effect me?

It depends on the loan type. If it's really a medical collection, Conventional loan underwriting will probably ignore it, meaning you don't have to do anything. If you are looking at FHA, they will include a monthly payment of $300 in your debt servicing (5% of the balance). This may impact your approval if it pushes your debt-to-income ratio too high. Me? I wouldn't worry about it and get cracking on your application. ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ At NEXA, we've got you covered. We are licensed in all states except MA and NY and we're pending approval in VA. ~ www.ApplyYes.com 480-889-9000.

Honestly its really no issue at all. Unless you decide to pay it so don't do that. I think you are good to go. I'm in Virginia nd familiar with this and happy to walk you through it without a credit report. Let me know if you want a call. www.ScheduleWithAndy.com for access to my calendar. Andy Zemon, NMLS 208916 Waterstone Mortgage