02-06-2013 07:10 PM
I am a newbie to the board, so I will try to keep it brief while providing all of the essentials.
My husband and I are looking to buy a new build inventory home, thr anticipated closing date would be sometime in May. We have placed a contract on the home and paid an earnest deposit of $1k with an additional $6k due within 14 days.
We are working with the builder's lender to apply for a home loan. Through the desktop system we were approved however according to the lender this could be a false positive. I have 8 disputes on my credit report and my husband has 2 disputes.
Most of the disputes are old and paid with the exception of 2 collection accounts. One with Meade & Assoc. for approx $800.xx and the other with Midland for approx. $1800.
The accounts have comments listed as "consumer disputes account"
With he new regulations, I was informed that all disputes had to be removed or resolved. I contracted all of the creditors and was able to resolve most of them with he exception of the two collection accounts. I contacted TU and spoke with a Rep who stated there were no active disputes and credit score is an accurate depiction. I was advised there were two options 1. I could contact the creditor directly and ask them to remove the language (previously tried and failed) or 2. They could open up an active dispute to remove the dispute.
I spoke with my lender to advise of the options presented and he recommended a rapid rescore. I wrote a letter for each of the trade accounts flagged by the desktop system, which was 4 of the 8 accounts and they will take my medial score with TU and run a rapid rescore.
In anticipation of my credit score taking a hit, I did pay all balances on open trade lines to below 15% in an attempt to offset the possible hit to my score.
Seriously worried about getting approved and if we are unable to secure financing will I be able to collect my earnest money back.
My median score is 639.
Any suggestions would be appreciated.
02-06-2013 07:19 PM
02-06-2013 07:24 PM - edited 02-06-2013 07:30 PM
I think your score might actually go up.
I sure hope so. The lender stated we should know something in 2-3 business days. If what the rep told me at TU was true,meaning no active disputes are shown and credit score is a true reflection of all accounts, the pay down on the open lines of credit should boost it.
I will keep the board updated as to what the results are.
02-06-2013 07:27 PM - edited 02-06-2013 07:28 PM
You should shop around for different loans and be upfront about your credit situation. You may end up paying a higher interest rate but that may be preferable to losing your earnest money.
I think I will, only went with this lender as they work closely with the builder and was hopinmg for a quick turn around for a hard approval since I was working with limited time (14 days) before the $6k became due.
02-06-2013 07:35 PM
Did they also rescore the cards you paid.
2 accounts are unpaid collections and the other 2 are paid accounts. Only 4 accounts came into scope, which I found really odd, considering there are 8 accounts total. These accounts date back to 2007-2009.
02-07-2013 11:04 AM
FYI disputed collections do not have an impact on your score. So the rescore on those will do nothing good or bad for the score.
My wife has a two disputes on her report and right now, her median is 653. Are you saying that when her disputes are removed, her credit score will not be impacted?
02-07-2013 11:18 AM
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.