Starting the process.....questions

[ripper998]

So after a year of working on our credit scores, me and the wife finally submitted an application to a LO with a lending company.  He took all our information over the phone, pulled our credit, reviewed our scores (my middle was a 680, DW was a 652) and said everything looked good except some of my stuff had disputes as I went through a credit restoration company last year.  He said he was going to submit it through the automated system and see what it says about them.  Submitted it, and it came back that the disputes didnt matter if the accounts were closed or were less then $500.  Has anyone else heard about this?  We are going to be going for a FHA loan.  We then had to send all the documents for our file (w2's, paystubs, taxes, 401k statements, bank statements) so we can get our pre approval letter.  I am concerned that we are going to get to the end of the process and find out the disputes will need to be removed. 

[boomhower]

The disputes will have to be removed.  The UW will kick it back if they aren't.  I have never heard of one going through with disputes showing.

Good luck!  It's a stressful prossess so be prepared to be irritated!

[Booner72]

I  have heard that in  some cases they don't - over 2-3 years, less than X amount, etc.  Do some searching here and you will find the answers...but I'd still start getting them removed anyway....bc you never know.

[ripper998]

I guess I am worried that if they remove the dispute comments that my credit score will go down like it has for others.  When I talk to my LO again on Monday I am going to make sure he talks to the UW about it. 

[JM-AM]

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@ripper998 wrote:

I guess I am worried that if they remove the dispute comments that my credit score will go down like it has for others.  When I talk to my LO again on Monday I am going to make sure he talks to the UW about it. 

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As of right now if your wife is going to be on the loan she has the lower middle score and is what your loan will be based on. 

Besides if your applying for FHA it does not matter if your score is lower as long as it is not lower then the minimum required by lender which varies between lenders. All FHA loans get the same rate available at the present time no matter if your score is 640 or 849.

[MBOhio2]

What your LO said is completely correct. FHA's guidelines give a few exceptions to the "disputes must be removed" rule. Some of those exceptions are if the account is closed, has a balance of less than $500, etc. Oftentimes lenders go overboard with the dispute rule and require ALL references to a "dispute" be removed, but FHA does not require this, so it simply sounds like your lender 1) knows FHA's rules and 2) follows FHA rules.

[ripper998]

I hope so, we are putting an offer in today for a house.  I know there are going to be hiccups and bumps but I am hoping it goes smoothly.

Middle credit score of mine is 670, wifes is 650.  30 ish% of DTI.  2 collection accounts, both medical.  One is $50, the other is $199.  Both were from 2007.  Also a few late payments from 2007.  One charge off settled account from back in 2006 ( college credit card where I was given too high of a limit and did stupid things).  

LO said it looks pretty decent, but I havent been able to sleep for a few nights.