It is correct that if you dispute an item and there is a status of 'in dispute by consumer or borrower' showing on the account, most lenders will not be able to loan to you even if you have excellent scores.
As far as that status actually affecting your score, I don't believe so. Your score should not have dropped due to a dispute in progress.
Also, I would not pay the Verizon account. Sadly it may drop your scores since the account is some years old, the scoring calculator is taking an older date into consideration when scoring you at this point. If you pay it it could turn it into a recent collection, depending on how Verizon reports the paid collection. It will look like a last activity date of this month. It could hurt you for a bit and then raise your scores after a few months.
If you are going in for a loan within a month, I would suggest not touching the Verizon account and writing into the 3 bureaus stating you no longer dispute the collection and make sure they do not have that 'in dispute' status on the account. But if you have some time i would dispute the account if it's inaccurate.
Suggestion: If you're trying to get into the loan for the first time home buyers tax credit, I would do it if you qualify. Then build your score up and refinance in a year to get a better rate on your mortgage.
