Here is another tip if you are getting ready to apply for a new home loan or if you have a loan currently in processing with a lender. DON'T PAY OFF COLLECTIONS OR CHARGE OFFS during the loan process. or just prior to applying. Paying collections will decrease the credit score immediately due to the date of last activity becoming recent. If you want to pay off old accounts, do it through escrow, and make sure that you validate that the debt is yours, and that the creditor agrees to give you a letter of deletion.

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