Disputing All Credit – Not Getting Mortgage Approval

We talked to a Veteran today who wants to buy a house, First Time Home Buyer, who was referred to a “Credit Repair Company” a couple of years ago… they, of course, disputed EVERYTHING on his credit report.  They also suggested that he obtain a Secured Credit Card (which he did) and maintain a balance roughly equal to half of the credit line (which he did).  His scores went up – and he called us about getting pre-qualified to buy a house.

We ran him through Freddie Mac’s Automated Underwriting System (LP) and it was referred – Because everything is in dispute.

This is not the first, second or third time that we’ve seen someone turned down by the Automated Underwriting System – because everything on their credit report (except the one open trade line with the Credit Card Company) is in dispute!

Loan Approval Denied Disputed Credit Accounts

Again, you can see from the bottom “comment” that the borrower only “Insufficient tradelines” – but that TOP comment basically says, “HEY!  This person is trying to Scam the system by disputing everything!”  We seriously told the borrower that they may have to go back and “un-dispute” a few items in order to get approved…

Plus they need some more credit.  We know that in order to get approved,  in most cases, you will need at LEAST 2 credit cards open with Available Credit on each one.  If you have a score that is at that “almost” point of being eligible for a mortgage, we OFTEN tell folks to pay the debt down to 1/2 of the high credit limit – or pay it down to like $50.

Those companies that are advertising all over Johnston County right now with signs that say – “Make Bad Credit Disappear for $199” are really not doing you any favors.

Are there legitimate reasons to reasons for disputing credit? YES!  But don’t get caught in a trap by just disputing EVERYTHING!

If you have questions about pre-qualifying for a mortgage loan in North Carolina- please call us!  Steve and Eleanor Thorne 919 649 5058.  We know how to get borrowers in NC approved, we know what credit scores and reports the Underwriters will take.  We’ll call you back, and if you need to add another credit card, or pay something off – we’ll work with you.  Here’s some GOOD CREDIT Advice (and it’s FREE!)!

We want to help you get into that NC Dream House!

Comments

  1. Thanks for sharing this post. The info that you’ve shared will be of great help for home owners around the country in paying their mortgages.

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