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I was reviewing my credit report today and noticed that one of our old mortgage companies has listed in the remarks something to the effect of "account disputed by subscriber." The thing is, we never disputed anything with them and the mortgage was paid off when we sold the house. The account does show as closed and paid, so I'm not sure if I need to worry about these remarks or not. We are planning to refinance and I don't want to hit any snags.
Some lenders and under certain parameters (FNMA more than Freddie) take issue with any disputed accounts. If you want to access the full breadth of lending opportunity, prepare individual letters to the 3 credit bureaus stating you do not dispute the account, and add to them a letter from the old mortgage company wherein they acknowledge that you do not dispute the account. You could do this yourself, or your lender on the new transaction can work with you to handle.
You should contest the negative comments with all credit bureaus reporting that.
I'm not an authority but I believe it could be a problem.
Alternately, get letters from your lender(s) stating your mortgage was closed in good standing with no monies due. In fact do that and then submit copies to the credit bureaus challenging your credit report.
If you don't plan to buy, contest/dispute all you want. However, if you plan on buying in the immediate future, do not dispute anything, especially if you know it to be true or you will seriously slow down your purchase.
OP, is the mortgage rated correctly? If it has M1 and shows no latest, there's nowhere to go higher. The dispute will have to be closed and comments removed.
If you don't plan to buy, contest/dispute all you want. However, if you plan on buying in the immediate future, do not dispute anything, especially if you know it to be true or you will seriously slow down your purchase.
OP, is the mortgage rated correctly? If it has M1 and shows no latest, there's nowhere to go higher. The dispute will have to be closed and comments removed.
Agree with Smart Money
You have a good credit score, the account shows closed and paid. Don't opening any disputes or investigations if your looking to purchase a home in the near future.
My $00.02 if you want to manipulate your credit score higher. On installment debt send more than the required payment - over time your score dramatically go up!!!
Sorry, I haven't checked back into this thread for awhile. Thank you for the additional input. We aren't purchasing, but are hoping to refinance after we complete construction of an addition later this spring.
As for the comment on the credit report, we've decided to just leave it alone unless it proves to be a problem. The account was closed/paid three years ago when we sold the house, and there are no negatives/lates associated with it (or any of our other accounts). It's literally just a comment line. No idea why it is there. Other than perhaps because this was one of those well known incompetent mortgage servicers. I remember we had to move heaven and earth to coax a payoff statement from them when it came time to close, and I had to speak with several different people before they could figure out what I needed, so who knows.
Both husband and I have scores near 800 right now, so I'm not terribly worried. I'm assuming if it was really an issue it would reflect in our scores. If we go to refinance and someone has an issue with the comment, we'll look into it further then.
Both husband and I have scores near 800 right now...
You are easily 100 points or more above anything that would matter. You will have no problem at all getting any kind of credit or mortgage unless it's based on some other additional criteria like income.
You are easily 100 points or more above anything that would matter. You will have no problem at all getting any kind of credit or mortgage unless it's based on some other additional criteria like income.
Good to hear. Income is not a problem (assuming nothing changes with my husband's job). We qualify for way more than what we would be trying to get. I think the only thing that could sink us is the appraisal, since we are wanting to do a cash out refi to pay off the construction loan/roll it into a regular mortgage. It shouldn't be an issue, but if we get an appraiser that doesn't know the area it could be a problem.
Good to hear. Income is not a problem (assuming nothing changes with my husband's job). We qualify for way more than what we would be trying to get. I think the only thing that could sink us is the appraisal, since we are wanting to do a cash out refi to pay off the construction loan/roll it into a regular mortgage. It shouldn't be an issue, but if we get an appraiser that doesn't know the area it could be a problem.
What state are you located?
The appraiser that comes out should know your area.
You may want to look into a rate and term refinance (no cash out) and then take out a seperate HELOC for the cash you need. You can/will get a pricing hit (slightly higher rate) when your loan goes from a rate and term refinance to a cash out refinance.
There's no way to tell if you're doing the right or wrong thing and even then it's just an opinion.
There are no details to your current loan situation so I cannot speculate on specifics but keep all of this in mind.
I recently obtained a mortgage and yes, an 'account dispute' record on my credit report affected my credit score and the interest rate I was able to get.
My credit score was fine, but my broker provided a form for me to sign, indicating that I didn't dispute the account. My credit score only adjusted a few minor points, but it shaved a few points of my interest rate. I would make an effort to get this notation removed from your account.
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