How to Dispute Credit Report Errors
While in the Mortgage Process
Veterans of the Mortgage Industry can remember a time when clients suffering errors or inaccuracies within their Credit Report, were typically advised to "dispute" those errors ...
But because of recent changes that have taken place in the Mortgage Industry's Automated Underwriting Systems (commonly referred to as AUS), the advice given to current mortgage clients may be quite different from that of the past.
Today's advice ... and the suggestion as to the timing and direction of recourse, will be based on a variety of information related on the Report, including:
- When the errors, inaccuracies, or reported items showing on the Credit Report took place
- The Nature of the items involved (Late Payments, Judgments, Liens, etc.)
- What financing actions the client is presently contemplating
First let me say, it IS important to correct errors and inaccuracies found on your Credit Report. But I can't stress this enough ... the timing in which you pursue it is very important too.
I know that sounds contrary to what would seem "common sense". But currently, with the implementation of the new Automated Underwriting systems mentioned above, a "disputed" account(s) showing on your Credit Report can mean the difference between your Mortgage Application being approved or denied.
Disputed accounts are often viewed as a negative factor ... and can be seen as a reason to deny your loan ... or at minimum, make your disputed accounts a "condition of approval". That would mean that those accounts in question become "undisputed". Resolution would need to be found prior to Underwriters allowing Approval of your loan or your Closing. That could cause major problems and hold-ups to your entire transaction.
So what should you do if your Credit Report comes back showing errors or inaccuracies? First, talk to your Mortgage Lender. In the Chicago area, that's me. Gain timely insight and advice as to how to best address the issue at hand and how to proceed.
But typically, I'll suggest that you provide written evidence and proof via documentation to the 3 Credit Bureaus that will support and prove your claims. The addresses and contact info for the 3 major Credit Bureaus are:
P.O. Box 740241
Atlanta, GA 30374
P.O. Box 2000
Chester, PA 19022
P.O. Box 2002
Allen, TX 75013
Remember: Do not register an official "dispute" with the Credit Bureaus! Don't use that terminology within the written note or evidence you provide. Provide only the data, documentation, and info needed to correct the errors, re-rate the account, or simply delete the account(s) in question.
It's important to know that there is typically no easy or quick path to correcting errors on a Credit Report. And it's unbelievably stressful to face them when trying to buy a home you love.
Which is why I always suggest running and checking your Credit Report, at minimum, once a year. That advice is especially important when considering a home purchase or refinance in the near future. Should issues need addressing, you've then allowed yourself enough time to do so without the stress of Contract constraints looming.
How to Dispute Credit Report Errors While in the Mortgage Process ... Follow the guidance provided by your Mortgage Lender to achieve the quickest and best results. You'll then be capable of moving ahead with a home purchase fully confident in reaching a successful outcome ...
* Hoping to Buy, Construct, or Refinance a home in the Chicago area? Contact Me. I'll put my 36 years of mortgage experience and expertise hard to work on your behalf.
I can be easily found at:
Cell or Text: 708.921.6331
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Gene Mundt, Mortgage Lender, a Lender with 36 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including: The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL.