Starting Credit Repair During Mortgage Process To Qualify For Home Loan

Credit Repair is the process of trying to get derogatory items removed off one’s credit report.  Does Credit Repair work?  The answer is yes.  Credit Repair does work and there are credit repair companies out there that can remove derogatory items such as unpaid collections, charge offs, judgments, bankruptcies, foreclosures, and other negative credit items.  Whatever a credit repair company can you, a consumer can do it themselves, however, many consumers do not have the time to do the research and tack on the duty of a credit repair consultant.  Credit is extremely important when qualifying for a home loan.  You credit score and your overall credit history is what determines whether or not you qualify for a home loan.  Credit repair is recommended to consumers with bad credit whether or not they are home buyers.  Good credit scores and good credit history will save consumers money.  Also, many employers now do credit checks on potential new employees as well as employees who are in line of getting promoted.  Credit Repair during mortgage process is definitely not recommended.  If you want to start credit repair, you need to start it before you start the mortgage application process.

Credit Disputes Are Not Allowed During Mortgage Process

There are many rules and regulations when it comes to mortgage loans.  One of the rules and regulations is that you cannot have any credit disputes on non-medical credit tradelines with balances and also you cannot have any credit disputes on charge offs.  Charge off accounts do not matter when it comes to FHA Loans.   However, you cannot have any credit disputes on charge off accounts during the mortgage application and mortgage approval process.  Medical collections are exempt.  You can have credit disputes on medical collection accounts even with medical collection accounts with unpaid balances.  You can have credit disputes on non-medical collection accounts with zero balances. Those are exempt.  If the aggregate amount of  unpaid non-medical collection accounts is under $1,000 you can have credit disputes.  However, if the total amount of unpaid non-medical collection accounts are over $1,000, you need to retract all of the credit disputes before your mortgage application and mortgage approval process can proceed.  Your mortgage process will be in suspense status until the credit disputes are retracted.

What Happens If You Retract Credit Disputes?

One of the major issues with retracting credit disputes during the mortgage application and mortgage approval process is that once the credit disputes is retracted, the chances are that your credit scores will drop.  How much will it drop?  It depends on each individual consumer.  I have seen credit scores drop from 2 points to 80 points.

Credit Repair is highly recommended but credit repair during mortgage process can create a lot of stress, especially if your credit scores drop after retracting your credit dispute.  If you are planning on buying a home in the future and you feel the need to start a credit repair program, do it way before you start the mortgage application and mortgage approval process.  If you are in need of a reputable credit repair company who has a track record of fast removals of negative items, contact Credit Fix Advisors .  Credit Fix Advisors can be reached at 815-210-1581.  The website for Credit Fix Advisors is www.creditfixadvisors.com .

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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