What is my best option mid score 636 wife's is 685 ran into problems with collection accounts in "dispute" status?

Asked by Tmalik73, Houston, TX Mon Mar 4, 2013

My wife and I have been looking to buy a home. We have worked on our credit for the past year. I raised my score to a 636mid and hers 685mid.we put in our application for pre approval finally and the loan officer said that weran uinto a few problems. My credit report shows that I have 6 accounts in dispute status and in order to move forward the verbiage must be changed. But that it will likely bring my score down. He suggested that if we want a home now the only option would be to try and just get her name on the loan. We have no debt and are looking to purchase a home no more than 120k.what are the pros and cons of doing that and is there any other options. Our lease is up soon and we need to make a decision. I would have liked to have my name on the loan as well. But at this point I'm tired of playing the credit game and living in a cramped apartment. Thabks

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Don Groff’s answer
Don Groff, Agent, Austin, TX
Sun Mar 10, 2013

There is a good chance you can do something now. Removing the disputes from your credit report will not effect your scores at all. You do not get a benefit from disputing an item credit wise and all lenders make you remove them.

For you to move forward now you would nee to remove those disputed items. I have to do that form time to time with my clients. All you do is have the the brokers or lender's company they use to pull credit reports call you and then call the different credit vendors and remove the dispute notes from the account. From there they will need to re-pull credit but while your scores may change somewhat depending on the activity your credit scores will not be effected by removing the disputes.

From there you should do all you can to see if you can bump your mid score up to a 640. If you can do that you would be able to obtain FHA financing at the same interest rate and fees as somebody with a 750 credit score. Even with a 636 I have lender's that can get you rates within a quarter point of the best FHA purchase rates.

Please feel free to call me if you would like to discuss further.

Hope this helps and best of luck to you.

Don Groff
REALTOR® & Mortgage Broker
Austin Real Estate Pros | 360 Lending Group
o 512.669.5599 m 512.633.4157
websites: http://www.AustinListed.com | http://www.360LendingGroup.com
1 vote
, ,
Mon Mar 4, 2013
If accounts are disputed, the file isn't denied..... It is referred to a manual underwrite.
Not all lender do a 'manual underwrite'. Maybe your lender doesn't do manuals? Maybe your loan officer does know guidelines?

See if you can find one you like that can do this.

Tom Burris
Mortgage Banker
(214) 763-4629 cell/text/nights/weekends(Really!!)
Lending all across the entire Great State of Texas!!
NMLS# 335055
Search Dallas area MLS for FREE. No registration => http://www.ntreisinnovia.net/cgi-ntr/BR_login?0501134
1 vote
, ,
Wed Mar 13, 2013
Hello Tmalik,

If your wife's income allows you to qualify for a Conventional or the more flexible FHA loan with just her on the loan, then that would be a most pratical way.

Also, go ahead and instruct your creditors accounts, that you are NOT disputing the account information and to remove the dispute comment, and let the credit score be what it will.

We are direct lenders, not mortgage brokers; our mortgage bank is best for mortgage financing - FHA, 100% financing USDA (zero down payment), Conventional, Jumbo, Foreign National, ITIN, Investment Financing, etc.

Give me a call or email, for any questions you may have.

Mario Romero
Amcap Mortgage Bank
0 votes
, ,
Thu Mar 7, 2013
Hello Tmalik73,

The most practical solution is that, if possible to qualify on the loan program's debt to income ratio guideline, with just your wife's income, then she should be just by herself on the loan application.

You can work on removing the dispute comment from your credit report accounts after closing. Please let me know if you need additional information and or have questions.

Mario Romero
Amcap Mortgage Bank
Branch Manager
0 votes
, ,
Wed Mar 6, 2013
From a mathematical standpoint when trade lines are in a dispute status they are used in the FICO model. Therefore the FICO isn't a true equation of what is being displayed. Your LO can do a rapid re-score. If you need more assistance with the credit side of your loan I can be of assistance. Best of Luck. Christina Solorzano
0 votes
***They aren't used.. Sorry. =)
Flag Wed Mar 6, 2013
Kallie Colem…, Agent, Houston, TX
Mon Mar 4, 2013
You can also try to find a nice home that offers Owner- Financing. There are a some nice properties that I'm aware of. They usually want 20% down with fair credit. Just let me know and I will send you a list of homes that offer Owner- Financing. Also, lease purchase might be a good option for you as well. You can always re-finance with a better rate down the line when your credit is up to par. Your almost there. Give me a call or email. I would be more than happy to help you.

Best Regards,

Kallie Coleman
RE/MAX Professional Group
0 votes
, ,
Mon Mar 4, 2013
Yes, the first step is to check out your credit report and go from there.

If you need more help or want to shop rates and programs available, I'll be happy to work with you.

Anna Maria Durr, NMLS 266699, TREC 596662
Codemark Financial
2626 Richmond Ave., Houston, Texas 77098
281-592-0667, anna@codemarkfinancial.com
Web Reference:  http://codemarkfinancial.com
0 votes
Al Geffon, Agent, Houston, TX
Mon Mar 4, 2013
If your wife can qualify for a $120,000 home by herself, that's the way to go right now. You can always refinance down the road, once your scores improve. 685 is decent enough, 636 is borderline, and the dings on your report must be addressed. Now you need to find the home. That price point does limit the areas that would work ... where do you want to look, and how much will you be putting down? Please get in touch, so that we can narrow things down and further explore your financing options. I look forward to hearing from you.

Regards ...

Al Geffon
(713) 213-6350
Web Reference:  http://www.har.com/algeffon
0 votes
We can go down to 560
Flag Mon Mar 4, 2013
Christy Hemp…, , Houston, TX
Mon Mar 4, 2013
I would need to see the credit report, in order to give you a better answer to your question. Contact me and we can discuss options.
0 votes
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