Removing dispute comments while pre qualification

[sghosh5]

Today I started my pre qualification process and on first try road block: the lender said the automated system is not allowing to approve unless I remove accounts from dispute or remove the dispute comments. I was planning to remove them but thought it might be needed in later stage while manual underwriting. Not during pre qualification. Is it normal for a lender to ask this during pre qualification

[Mrs_hambright]

My lender put this condition on my pre-qual & I couldn't app until all comments were removed.

[HouseMouse]

You can't get a loan with disputes. A dispute removes that entry from scoring as well.. so best to do it now and face what happens then get all the way to the end and have it pulled.

[Warrior2000]

I have a middle 656 and my wife has a 624. We were pre-qualified but our LO said that a Dispute comment had to be removed if not she would to send to manual. The dispute is on a student loan which had late payments on 12/13. Will her score drop?

[sghosh5]

@Warrior2000 , when your wife submitted the dispute on the student loan, did she get a increase in here scores? The late happened too recent, and possibly affecting her scores if there is no dispute comment on it. The only time a removal of dispute comment will have no affect if the derogatory accounts is already too old. But it depends if the scores increased while the account was in dispute. I am speaking through my experiences. After removal of disputes i didn't lose points. My EQ score did go down for few days but gained back those points and more as the accounts are already 7 years old.

[Warrior2000]

We NEED a 620 on hers to. E approved. I'm not sure if her credit went up due to dispute alone. She removed the verbage last week and since submitted a rapid rescore. Just nervous about the drop. Will dropping ulitization from 20% to under 9% affect positively any?

[sghosh5]

20% utilization is not too much to hold her scores down. Dropping it to 9% may help get scores up a bit. Usually the scores drop right away after removing the dispute comments. If it didn't happen yet then it may not even happen