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.
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.
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.
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.
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?