All consumers have a right to correct mistakes on their credit report. However, home buyers should be aware of the impact that this can have on getting home financing. This article offers important details on disputed trade lines and the affect on NH financing.
Getting Ready for a Real Estate Purchase
If you are intending to buy real estate in the future, be proactive about reviewing your credit report several months in advance. This gives you the opportunity to find and address mistakes prior to applying for a loan. Preferably, you would want any disputes resolved before starting the home purchase process. If you do have any pending items, notify your mortgage consultant as soon as possible. Do not presume that it was noticed on your report at the pre-approval stage.
What Are Disputed Trade Lines
If you uncover a mistake on your credit report, you have the right to correct it by sending a request to the three credit bureaus. A notation is added to your credit file and the accounts are marked as disputed trade lines. Credit bureaus can opt to disregard the specific items when compiling your credit score, so they may not impact your score while in process. Usually, the notation is cleared when the issue is settled and, if applicable, the needed corrections are completed. This process may take many months. Even though you may not notice a negative impact on your score, the details of the dispute can cause other issues.
Disputed Trade Lines And The Affect On NH Financing
Many mortgage companies implement electronic underwriting systems. Your credit score and other aspects of your credit report are evaluated by this system. Disputed trade lines may lead a loan application to be denied or sent for manual underwriting. Gather all paperwork and supporting material on disputed trade lines. If it was a debt that you paid off but was not properly credited, have statements showing the amount owed and confirmation of payments made. Also write a letter explaining the sequence of events. This can better your chances of getting the mortgage approved. Keep in mind that many lenders will not approve an application if there is an active dispute, regardless of the scenario. This is in place in an attempt to minimize fraud but, unfortunately, can sometimes hurt consumers with reasonable claims. To be safe, it may be best to clear credit mistakes before submitting an application. For additional information, contact me Donna DuFour at Accurate Title via phone at 800-639-4405 or email firstname.lastname@example.org.