As a mortgage broker, I know how important it is to monitor credit and to fix errors as soon as possible. Now that I have trained my clients I find that the now excellent credit borrowers with "disputes" are facing a roadblock to their mortgage financing.
How is this possible?
About six months ago, I met with a client that was trying to sell their home. In anticipation of needing a mortgage in the future, we looked at his credit report. The timing was great as my client found that someone had recently posted a bogus charge against one of his old credit cards. He immediately notified the credit card company and the dispute process began. If everything worked as promised, the dispute should be cleared and reference to the dispute should be dropped within 60 days.
Unfortunately, while the dispute was resolved, the reference to "DISPUTED ACCOUNT" reemained on the credit report. When we tried to get a mortgage, the lender said they would not lend to someone that has a "DISPUTED ACCOUNT" referenced on their credit report even with 760 credit scores. The client needed to wait until the reference was removed.
When our client found out it would take several weeks before the reference could be removed, effectively killing any chance that the closing would happen on time, we made some calls and had the creditors letter forwarded through the back door where once verified, the credit scores and report no longer showed the reference to a "disputed account.
Guess this is another expample where a mortgage broker is Service Driven to make sure hurdles ar cleared and everything comes together.
Have a great day!
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