So i've already gone through the preapproval process, and made an offer on a house. Offer was accepted, and inspection was done. I'm at the point of submitting all my information to the loan officer, but there is a slight problem.
Apparently during my pre-approval credit check, there was a disputed collection account listed on my credit report. It was not showing on my personal credit report at the time I had the pre-approval done. It was previously disputed in 2014, and last month i had success with all agencys removing it via early exclusion. (set to fall off this month) In my list of required documents, a signed and dated letter reguarding the account is required. I asked the LO if i still had to submit info on it since it has been removed from my account, and the answer was "yes!" (when and why)
How should i go about explaining this? Legitimately, they charged me interest on the account, which was a clear violation of my contract with the OC. This was going to be my 2nd route if the early exclusion did not work. Any advice?
