I have been paying off my credit cards through a credit counseling agency for the past five years. Part of the agreement was they would be closed and I would no longer be able to use them. Easy enough. I was recently pre-approved for a mortgage of $ 230K and got a real blow! I got an alert saying that one of my cards had not been fully closed and my FICO dropped 8 points as a result. I checked things out thoroughly and come to find there is one more card that I paid off through them that hasnt been reported as closed which will knock another $ 6K off my ratio. My question is how could/will this affect my ability to get a mortgage. There were no balances on those cards so I am not adding any debt which I know is a no-no going through this process. On the bright side, I am not able to add any more debt so that looks good…I think? Assuming my FICO score doesnt fall below mortgage limits is there still a chance my loan will go through? I am going to try and get in contact with my broker but it is a holiday weekend, so any advice would be appreciated!
So for 5 years I had my cards in a counseling agency and paid them all off earlier this year. All the accounts were supposed to have been closed, but apparently a couple were left open and one just closed out on my credit report. They were paid off and had no balance. I am just concerned that my debt-credit ratio is going to be out of wack and send my fico score down. Which would then disqualify me from getting my loan approved. It is a USDA guaranteed loan.