cancel
Showing results for 
Search instead for 
Did you mean: 

Fico Score Mortgage Underwriting Question!

tag
Anonymous
Not applicable

Fico Score Mortgage Underwriting Question!

At pre approval last month my FICO was 660. During the underwriting process I had to get all dispute comments removed off the report. I did so, and dispute comments were on collection accounts, which changed the comment to "paid collection" etc. 

 

One account has updated and dropped my Equifax score to a 633, and if the others drop the score I fear I will not get approved when they pull my credit again after all is updated. I have the home ready to go, but now I am scared I will lose all my money etc. just because of these comments being removed. I understand why they needed these removed but am very frusterated!

 

I am using a mortgage company recommended by my real estate agent, and using my VA loan as well, and I am a first time buyer

 

Has anyone else had this happen? If so, were you denied? 

 

 

Thanks for the help!! 

Message 1 of 5
4 REPLIES 4
Booner72
Senior Contributor

Re: Fico Score Mortgage Underwriting Question!

Hi there - I thought that when they do the final pull before they fund the loan, they ignore the score, only pull again to check to see if you obtained new credit, got new derogatory info, etc.  I worry that the inquiries will drop my score before all is said and done, so I specifically talked to my LO about this.

 

 

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Message 2 of 5
Anonymous
Not applicable

Re: Fico Score Mortgage Underwriting Question!

I was thinking that also, nothing has changed at all. The 3 accounts I had dispute comments removed were collection accounts but that was all. 

I am hoping that is how they do it! I thought they go off the final score

 

 

Message 3 of 5
smackmaster2
Valued Member

Re: Fico Score Mortgage Underwriting Question!

Well, when you disputed the collection items, your score I assume raised quite a bit, right? When the dispute gets removed, it makes the score go back down. Having a collection in a "paid" status does not actually help your score, it can actually make it go down too. There is no FICO difference between a paid or unpaid collection, which I find to be very unfair or at the least not very intuitive. The only way to have it help your score is to do a PFD and have it deleted from your reports. It sounds like it might be too late since you have already paid them, but you could always try to GW them, but after paying them, you have given away any leverage you may have had.

 

Good luck...

Start 6/16 EX 582 TU 578 EQ 554
Current 8/5 EX 700 TU 711 EQ 651
Message 4 of 5
DallasLoanGuy
Super Contributor

Re: Fico Score Mortgage Underwriting Question!

i have been told that disputed accounts are NOT scored.

 

This is why banks want the dispute resolved.

 

Unfortunately, we cannot determine when the account is disputed or if there is just a statement (which doesnt affect fico)

 

basically, people have been gaming the system with disputes and the lenders wised up.

 

unless you have some revolving debt to pay down to offset the score drop..... you are stuck with your ACTUAL credit score that includes all reported accounts without dispute

 

Retired Lender
Message 5 of 5
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.