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Can I Dispute a CR Item Now, Or Should I Wait Til After Closing?

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Alberio
Contributor

Can I Dispute a CR Item Now, Or Should I Wait Til After Closing?

I have something reporting inaccurately on one of my student loans which has been sold and the servicer no longer services loans (so there is no one there to fix it for me on their end).  I think getting it removed would significantly increase my credit score.  BUT I think I read that having a dispute on your credit report is a big no-no when going through a mortgage application and closing process?  Am I dreaming this?  Should I stear clear until after we close?  Or go for it now (and potentially reap much better interest rates that would come with a higher FICO)?


Starting Score: 644 (EQ) 646 (EX) 670 (TU) as of 11/2013
Current Score: 732 (EQ myFico) 740 (EX myFico) 740 (TU myFICO) as of 8-25-14
Lender Pulled Scores (3-19-14): 709(EX)/700(TU)/670(EQ)
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ShanetheMortgageMan
Super Contributor

Re: Can I Dispute a CR Item Now, Or Should I Wait Til After Closing?

If the dispute will be investigated and the dispute language removed before you apply (could take up to 30 days), then it'd be fine to dispute it.  If you were planning on applying while the dispute was in progress then that wouldn't be a good plan since disputed accounts may need to be taken out of dispute (depends on the type of financing & the details of the disputed account), so if that is the case then I'd recommend you wait until after you have closed.  Remember if you dispute online then the creditors have 45 days instead of the standard 30 days.

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 2 of 4
Alberio
Contributor

Re: Can I Dispute a CR Item Now, Or Should I Wait Til After Closing?

Thanks Shane.  Is that still the case if I am at a $0 balance with them?  These are slow pays reflecting from a year + ago and then my subsequent payment history shows as on time until the loan was sold (and I have an on time payment history with the new lender). I think in the FHA context at least (I am hoping for a non-FHA loan, however) that if you had a $0 balance and the account was resolved in some way, it was not a problem to have a dispute.

 

Am I able to withdraw my dispute if this isn't resolved before I want to apply?  Or am I at the mercy of the original lender, which has few to no one answering the phones any more. 


Starting Score: 644 (EQ) 646 (EX) 670 (TU) as of 11/2013
Current Score: 732 (EQ myFico) 740 (EX myFico) 740 (TU myFICO) as of 8-25-14
Lender Pulled Scores (3-19-14): 709(EX)/700(TU)/670(EQ)
Goal Score: 710 (Made it!!)


Take the myFICO Fitness Challenge
Message 3 of 4
ShanetheMortgageMan
Super Contributor

Re: Can I Dispute a CR Item Now, Or Should I Wait Til After Closing?

Correct on FHA, but if you are trying to apply for conventional the dispute comments will need to be removed in order for automated underwriting findings to be considered valid.

 

You can always remove the dispute comments, especially if you are the one who initiated the dispute.  Sometimes it can be done instantly over the phone with the credit bureaus, sometimes it takes 3 or so business days for the dispute comments to come off.

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
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