Disputes and preapproval/underwriting impact

[Anonymous]

Hi we decided to hire a credit repair company to help us tidy up our credit in preparation for a mortgage loan preapproval.We are working with a LO at bank that requires 620 minimum.Ive heard that ongoing disputes can mask Fico scores by making them falsely higher. How do we get around that without stopping the disputes completely? I’m hoping if our scores are up by April we can stop the dispute process and get a preapproval quickly. Anybody with any experience in this?

[IQn2D]

What is your mid score at the moment? Why did you choose to use a credit repair company? Most information to repair your credit can be found on this site. The money your using to repair your credit can be used to pay a  bill. Unless, you just don't have the time to work on it yourself. However, getting your credit on track takes time. So if the credit repair company can work super fast to get things removed. I happy for you.  I would think that the LO would tell you what needed to be corrected before you actual applied for the loan. My LO sat with me and told me what I need to dispute to either update or remove. So that everything was g2g before I applied for my loan. (No dispute showing when my file went too underwriting) If it's showing then it will not get approved. 

Now if the CRC get's you to the score you need for pre-approval. Just ensure no disputes are showing when you go for your actual loan.

[Anonymous]

Having disputes will definitely hold up mortgage process. It's my understanding that the loan will need to go through manual underwriting. This is done to insure the dispute is accurate or not. The lender will require proof that the dispute is genuine or not. It can very well be a deal breaker.

[Anonymous]

Yes once my middle score is where I need it to be 640 ish , I will have the dispute comments removed so I can get the loan preapproval. Current middle score is 599. I realize my score will drop once I do that but as long as it’s still in the 640s that’s what LO wants. The LO told me to pay off five collections but now I want them deleted , as well as some lates I had from four years ago. To remove the “disputed” comments do I just call each bureau? I know it can take 45 days but once I’m preapproved I will have plenty of time before file goes to underwriting because I’m buying new construction which won’t be built for seven months. As long as I don’t have to go through manual UW I don’t mind

[IQn2D]

Maybe you should post on the forum I listed below. They can help you in the rebuilding and correcting your credit report. Remember it's about correcting information that's inaccurate. The forum below is very specific about what you are can ask questions about. How long has the collection been on your report. Has it been 7yrs? 

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/bd-p/rebuildingcredit

[Anonymous]

No some are 2 -5 years old and one is six

[Anonymous]

I think its based on the lender. We were in credit repair during our whole mortgage process and not once did the LO or underwriter say anything about the open disputes. We were not asked for them to be closed or removed so we kept the process going.

[Anonymous]

King bishop I wanted to PM you but can’t figure out how. Wanted to ask if you used a credit repair place since you mentioned above you were in repair process when you bought? Pls PM me if you prefer thank you!

[gdale6]

Quickest way to remove dispute comments is to call each CRA and tell them you are not disputing anything any longer and want the comments removed. Most lenders will not approve you until this is done so they can get a true fico on you as certain aspects of a reporting TL are removed from scoring during a dispute.