Back to underwriting Closing in Limbo! (loan officer, credit report, loan, bank)

[Marymartingale]

We are in the final days of closing on our first home - and we had the commitment letter from the bank 3 weeks ago, there were 2 items on my credit report that they wanted to confirm with Equifax Mortgage Solutions and then we all set. We made some phone calls and our mortgage processor said we were good to go, could even close early. We were scheduled to close yesterday, and the bank emailed us the day before closing to say there was something still not updated on the credit report and we need to wait for that to be done - basically there was a 64 dollar account that was in collections 2 years ago, that I paid off, that had a note in the comments section that said 'consumer disputes this account information'. It also stated it was paid in Oct 2011. Becuase the comment said 'dispute' the bank said it needed to be removed from the credit report entirely. We finally got the comment removed, now its back to underwriting and has been since yesterday.... our realtor and lawyer has tentatively scheduled the closing for today now, but we still havent heard anything back from our bank! Is this gonna still go through? I cant believe this is all happening over a 64 dollar collection item that was paid 2 years ago - what can I do?

[thelopez2]

As long as your other documents aren't too old and nothing significant had changed, I wouldn't worry.

[Pfhtex]

Originally Posted by Marymartingale

We are in the final days of closing on our first home - and we had the commitment letter from the bank 3 weeks ago, there were 2 items on my credit report that they wanted to confirm with Equifax Mortgage Solutions and then we all set. We made some phone calls and our mortgage processor said we were good to go, could even close early. We were scheduled to close yesterday, and the bank emailed us the day before closing to say there was something still not updated on the credit report and we need to wait for that to be done - basically there was a 64 dollar account that was in collections 2 years ago, that I paid off, that had a note in the comments section that said 'consumer disputes this account information'. It also stated it was paid in Oct 2011. Becuase the comment said 'dispute' the bank said it needed to be removed from the credit report entirely. We finally got the comment removed, now its back to underwriting and has been since yesterday.... our realtor and lawyer has tentatively scheduled the closing for today now, but we still havent heard anything back from our bank! Is this gonna still go through? I cant believe this is all happening over a 64 dollar collection item that was paid 2 years ago - what can I do?

Sit tight, it's all going to be ok. The Disputes thing is a headache, but you are in "hurry up and wait" position.

Maybe don't schedule the moving truck yet, though, because you likely will not fund today, just hopefully sign docs. The hard part is over.

[Bette]

I am a mortgage broker in Florida. Disputed items on credit report need to be removed and can hold up closing!

This did start a while back but in November, guidelines did tighten up and lenders must have this done.

Make sure in the beginning that you go over the file with your loan officer and make sure there are no disputed items.

To the OP: It sounds like it's getting done very quickly; it can take a while but you should be OK. If they need your help, make sure you are available.

Note: Years ago, the trick was to put items in dispute on the credit report. The score then improved. Basically, the disputed comment negated the item. A while back, the bureaus got smart but now the lenders and the underwriting engines are now smarter.

Not to scare anyone but it the score goes down and it's significant, it could affect your pricing with the lender so be aware!