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disputes on credit report

My credit score is 595 I have disputes on my credit as I was working with a credit repair company most of these items have been paid will I qualify for an FHA loan? by msmalcolm1933 from Minneapolis, Minnesota. Jul 25th 2016 Reply


William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,486 contributions

Much more info needed to answer your question.. First, When you dispute an item on your credit report, per the law, that trade line is no longer affecting your credit score.. In other words, it's ignored for credit scoring purposes.. This was a trick loan officers used to used years ago.. they would tell a client to dispute all the bad items on the report and then the lender would re-pull the credit report.. miraculously , the score went higher.. But it didn't take long for lenders to catch on.. so now, if you have any disputed items on your credit report, then the lender will make you remove the disputes prior to application so the credit score is properly displayed.. 2nd, if you paid off old accounts, then in all reality, your score is probably going to be lower.. Credit scores are affected by the MOST RECENT credit events.. If you have a 5 year old collection, then that collection would have little impact on your credit score today.. but if you make a payment today on this old collection, then the "Date of last activity" becomes "Today".. so you would have a "Paid Collection" with a DLA of today.. which would drop your score.. Understand that there is little difference between a collection and a paid collection.. the fact that the account went into collections is what drops your score.. Third, lenders do not do approvals solely on credit scores.. They look at the overall profile of the borrower.. income, type of income, length of income, debt, debt to income ratios, assets, etc, etc, etc.. Also, the lender will look for credit deficiencies such as Bk's, foreclosures, Short sales, Unpaid student loans or unpaid taxes, collections, Judgments, etc.. you could have a 750 credit score, yet with one of these deficiencies, you still might be denied.. For all these reasons, before you do another thing with your credit, you should contact a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Jul 25th 2016
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David R Youngs - Assistant Vice President (DavidRYoungs)
#65 ranked lender in Minnesota - 60 contributions

It is very kind of William to spend time answering your question in detail, considering he does not even lend in Minnesota. William is correct in all that he stated here. There is a lot that is considered when underwriters look at your profile. It is important to not only understand where you are at now, but how you can get into a position to qualify ASAP, even if you cannot at this moment in time.My office is in Roseville, just off HWY 36 and 35W outside Minneapolis. As a WHOLESALE mortgage broker, like Will stated, I have licensing and access to practically every loan option available in the market. This includes options for those with lower credit scores and more unique situations. I would be happy to take a look at your situation and offer recommendations if you like, free of charge. You are welcome to call me @ 651-636-2840 Ext 12 or email me at dyoungs@progressivels.com whenever it is convenient for you. I look forward to hopefully speaking with you soon!

Jul 25th 2016
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Joe Becker (JoeBecker)
#59 ranked lender in Minnesota - 58 contributions

Most likely we will be able to help you out with FHA financing. We need to talk about your situation and circumstances in order to determine for sure. Please contact me at your earliest convenience. Thank you.

Jul 25th 2016
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Scott Fix (ScottFix)
#1352 ranked lender in California - 184 contributions

Great Question - First, work with a local loan professional when your timing is right for your loan. If David is close by, give him a shout and make an appointment. Now fo the other stuff, William and David are spot on. Additionally, be wary of some credit repair businesses. Credit repair or restoration should keep the derogatory invalid or incorrect information OFF of your report permanently. Some companies performing such services will help you to "boost" your score, but later down the road, say 6 months, some of the derogatory information reappears. I would suggest http://www.xperiacredit.com/ Ask for Mathew Mincks. Raising your score into the mid 600"s can only help your situation, but as stated previously by another contributor, many other factors will weigh in to the underwriters decision to approve the loan or otherwise. All the best, Scott.

Jul 25th 2016
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,817 contributions

If you started, and have now FINISHED the credit repair process, with all the disputes over, by all means, feel free to apply with a local lender like myself. If you are still in the process, wait until you are finished. Credit scores likely will have gone up, but credit scores alone does not make a loan approval. A complete review of your application is required. I am in St Paul, and have been #1 on Lender411 for Minnesota for years. Click my name to learn more.

Jul 26th 2016
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