Strange situation

[wilsoga1]

Hello all,

I'm here for some advice.  My wife and I are planning to purchase a house very soon (already found one we really like), but when the lender pulled our credit, we found a mistake.  We had an autoloan that was paid off earlier this year, but it still appears on our credit report.  I called the credit union, they state that they're reproting it as paid in full.  The lender has said a letter from the bank saying so would suffice to go forward with the mortgage.  However, I'd like to get this off our credit reports, but I don't want to initiate a dispute to hold up the mortgage process.  Would a letter from the bank be enough to go through with the process, then dispute after we close?  Or should I initate a dispute now?  We want to move foward with the house we've found...

Any suggestions or advice would be greatly appreciated!

[dashpt]

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@wilsoga1 wrote:

Hello all,

I'm here for some advice.  My wife and I are planning to purchase a house very soon (already found one we really like), but when the lender pulled our credit, we found a mistake.  We had an autoloan that was paid off earlier this year, but it still appears on our credit report.  I called the credit union, they state that they're reproting it as paid in full.  The lender has said a letter from the bank saying so would suffice to go forward with the mortgage.  However, I'd like to get this off our credit reports, but I don't want to initiate a dispute to hold up the mortgage process.  Would a letter from the bank be enough to go through with the process, then dispute after we close?  Or should I initate a dispute now?  We want to move foward with the house we've found...

Any suggestions or advice would be greatly appreciated!

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Yupe, a letter will work....bank letter head and so forth....

[StartingOver10]

Don't dispute it now - it will delay your mortgage process because no disputes are allowed to show on your CR while you are getting a mortgage as the disputes 'mask' your true score.

Get the letter the lender asks you to get and wait until you close to dispute if you choose to do so.

I have a question for you:  do you really mean you are trying to get the TL off your report or do you mean you want to correct how it is reporting?

Closed TL's stay on your report up to 10 years after you finish paying and close the TL. That is usually a very good thing. You want a history  - a good history bolsters your score,

[wilsoga1]

Thanks for the advice!

We don't want to remove the TL, just want it to be reporting correctly.  Not sure why it's still reporting, but like I said earlier, we don't want to delay the mortgage process.

Additionally, we've recieved the car title from the DMV stating no leins...a letter from the bank and a copy of the title should be enough, correct?

We're just afraid to get through the closing process to have this come up again and not allow us to get the house we want.

[dashpt]

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@wilsoga1 wrote:

Thanks for the advice!

We don't want to remove the TL, just want it to be reporting correctly.  Not sure why it's still reporting, but like I said earlier, we don't want to delay the mortgage process.

Additionally, we've recieved the car title from the DMV stating no leins...a letter from the bank and a copy of the title should be enough, correct?

We're just afraid to get through the closing process to have this come up again and not allow us to get the house we want.

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Submit all the documents you have that proves the car has been paid off, you can always  dispute later......

[wilsoga1]

Thanks you all for the prompt advice!  Wish us luck!

[DallasLoanGuy]

yeah. dont dispute. 

lender will do a credit supplement to verify account status on anything you think is wrong like that

[wilsoga1]

Gotcha, thanks!

So, what exactly is a credit supplement?  From what I've read-

We provide documentation to prove it's paid in full

Lender will hire a 3rd party to contact each credit bureau to update our credit report

3rd party will notify the lender of the correction

We can proceed with our mortgage

Is this correct?  Will this delay the whole mortgage process?  We're a bit concerned because we don't want to miss out on the house we've found.

[DallasLoanGuy]

the company we use to pull credit can verify individual trade lines. so, yes, it is a third party verification.

alert the loan officer that they will need to do this from the beginning and you will be fine. 

i have done lots of them on my files and they usually only take a couple of days