After waiting more than 2 months to get our scores over 640, our loan officer stated we were denied in automated approval for a VA loan. He did not tell us why we were denied but he faxed over these forms to be signed to get the "account disputed by consumer" remarks removed. He said he had a gentlemen with the same comments and once they were removed he was approved. This was done on Aug 1 and he said it shouldn't take more than 2 wks to get approved. We are buying new construction and he was referred to us by the builder rep. I sent the builders rep an email on the 10th asking that we close before the 27th because that is the first day of school. She sent the loan officer an email asking where were we in the process and could we close before the 27th. He sent her a response saying it's highly unlikely but he would try. Now, this is totally different from the info that he gave us. Later that day he sends the discloser and rate lock paperwork to be signed and asked for our most recent 401k, pay statements, and bank account statements with a p.s. line stating if we want him to process the paperwork to get the disputes comments removed it will cost $755. Needless to say, I am highly upset and disappointed with this entire process. We only need a 620 to qualify with VA but I wanted it to be higher to avoid setbacks. First he tells us the credit score was the problem because we couldn't seem to get past a middle score of 618. I am past the point of being tired of getting the run around and want to know if I can have the comments removed on my own and go through a new mortgage company. My family and I have been going from hotel to hotel for the past 2 months waiting to close on this house. Any advise you guys can offer is greatly appreciateted.
I went thru the same thing and I needed to get the comments removes, and it made my score drop.
I am now waiting it out so my scores can recover.
Dropped my scores on EQ and EX by around 30 points, however my TU score went up.
I would really check into the situation before I did anything. Just like tooleman, my LO told me to get the disputes removed after he gave me a pre approval, he said the UW would ding me on it. Well I got them removed, it dropped each bureau 30 to 40 points, two recovered before closing, TU is still down, and it dropped over 50 points.
And it was all for nothing, the bank/UW never mentioned the disputes, they were on old closed accounts with zero balances so they didnt care anyways.
I know you may be invested in your current loan officer/broker, but I would look around for another. I say this because I also signed that paper (and the dispute comments were removed within DAYS) and it didn't cost me a dime.
I find the $755 to remove dispute remarks to be totally ridiculous. You can do it yourself for free, though it will take a little time, so the sooner you start the better. I believe there is a post on the phone numbers you need to call in order to get this done. I remember having to do this in order to close on my loan and though it was a pain, after a week all of the comments were gone.
Don't let anyone trick you and don't move forward if you don't feel comfortable doing so.
I called last week to have same comment removed after I settled a collection account, I just got FICO alert yesterday that my score dropped 11 points. Yes 11 whole points just for removing a dispute comment. I am sending GW letter to have the account deleted.
Just went through this process on Friday, all dispute comments removed by yesterday. I called the creditor of the account and the credit bureaus. My experian fako score went down by 10 points. This was an account that had a 30 day late a year and a half ago. It is still open. It makes it a lot easier when creditors are use to dealing with situations that may affect your ability to get a mortgage and are willing to help. Good Luck on your journey, just be prepared in possible decrease in score..
This really sucks, I sent out GW's already and i am hoping this account get deleted.