I See This Simple Thing Kill Many Loans…

I wrote about this 6 months ago – but I think it bears repeating.This simple thing stops many loans in their tracks – and I want you to be aware of it.

I wanted to point out one downside of disputing accounts on your credit report.  …These would be accounts that you have disputed but there’s really been no resolution.  In other words the account is still on your report – and now has a “customer disputed” message on it.

If you are trying to get a conforming loan (Fannie Mae, Freddie Mac), or an FHA loan – you will find the automated underwriting system doesn’t like accounts with “disputed” on them.

It won’t include these accounts in the automated underwriting analysis.  It will tell you to remove the disputed language from these accounts so it can finish its job of underwriting your file.

I can tell you removing the disputed language from these accounts can end up being quite a chore.  …and, I’ve had it derail some loans because we couldn’t remove it.

…just wanted you to be aware of this.