All consumers have the ability to correct mistakes on their credit report. However, home buyers must be aware of the effect that this may have on getting financing. This article provides important details on disputed credit accounts and the impact on Las Vegas home financing.
Getting Ready for a Real Estate Purchase
If you are thinking of buying a home in the future, be diligent about reviewing your credit score several months in advance. This gives you the time to find and address errors prior to applying for a mortgage. Ideally, you would want the disputes addressed before beginning the home buying process. If you do have any pending items, inform your loan officer as soon as possible. Do not presume that it was seen on your report during the pre-approval process.
What Are Disputed Credit Accounts
If you discover an error on your credit report, you have the right to correct it by sending a request to the credit bureaus. A note is added to your credit report and the accounts are marked as disputed credit accounts. Credit bureaus may choose to disregard the specific items when determining your credit score, so they might not impact your score while in process. Typically, the notation is removed when the error is settled and, if necessary, the needed corrections are made. This process can take many months. Although you may not notice a negative impact on your score, the details of the dispute can cause other problems.
Disputed Credit Accounts And The Impact On Las Vegas Home Financing
Many lenders utilize electronic underwriting systems. Your credit score and other aspects of your credit report are reviewed by the program. Disputed credit accounts may cause a loan application to be rejected or diverted to manual underwriting. Gather all documents and information related to the disputed credit accounts. If it was a charge that you paid off but was not properly reflected in the credit reports, have statements showing the amount owed and confirmation of amounts paid. Also write a letter clearly explaining the scenario. All of this may improve the likelihood of having the financing approved. Keep in mind that some lenders may not approve an application if there is a dispute on file, regardless of the legitimacy of the claims. This is implemented in an attempt to reduce fraud but, unfortunately, can sometimes hurt buyers with reasonable claims. To be safe, it may be best to fully address credit disputes before applying for financing. It is important to speak with a mortgage advisor for personalized advice on your financing needs.
To be referred to a local expert, Arina Hanciulesco at Keller Williams Realty at 702-3064766 or soldbyarinah@gmail.com.
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