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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!!
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.
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
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...
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