In this blog, we will discuss and cover how credit repair prior to the mortgage process can halt the overall loan process. I would like to introduce my team at Gustan Cho Associates. The Team at Gustan Cho Associates are national experts in helping folks with bad credit qualify for mortgage loans. Gustan Cho Associates at NEXA Mortgage is a mortgage broker and correspondent lender through AXEN licensed in 48 states with a business model of not having lender overlays on government and conventional loans. We have a national reputation of being able to close loans other lenders cannot.

Over 75% of our Clients are Borrowers Who Could Not Qualify at Other Lenders

Over 75% of our borrowers at Gustan Cho Associates are folks who could not qualify at other lenders due to their lender overlays. We are also experts in Non-QM and alternative financing loan programs. In this article, we will cover and discuss why not hire a credit repair company to fix your credit if you are intending on applying for a mortgage. Credit disputes will not help if you are applying for a mortgage, credit repair can do more damage than good for borrowers.

Mission At Gustan Cho Associates Mortgage Group

Our mission at Gustan Cho Associates is to educate borrowers, home buyers, sellers, attorneys, realtors, other mortgage/real estate professionals. Many mortgage professionals become our subscribers at Gustan Cho Associates. Besides originating and funding mortgages, our team of professionals writes weekly blogs about the importance of credit, maximizing credit scores, and quick credit fixes as well as advice on repairing credit. We help our viewers with free credit repair. There is no cost in us helping our viewers repair their credit and boost their credit scores to their maximum potential. Credit Repair is not required to qualify for a mortgage.

Is Credit Repair Needed To Qualify For Mortgage?

Consumers do not have to be represented by a powerful credit repair service that will change the outcome of a lender’s marketing efforts when they run across a customer who has a negative credit report. There are so many folks who spend hundreds if not hundreds of dollars in hiring expensive credit consultants to qualify for a mortgage. Credit Repair Prior To Mortgage Process Can Halt Loan Process. Not only can credit repair halt the mortgage process, but it can do more damage than good.

Why Is Credit Repair Dangerous For Mortgage Borrowers?

All lenders will not allow credit disputes during the mortgage process. The main reason credit disputes are not allowed is because once a consumer disputes a derogatory credit tradeline, the credit bureaus will discount the negative credit tradelines from their credit scoring algorithms. Therefore, the credit scores are not reflective of the actual scores. Once the lender will instruct borrowers to retract the credit dispute, the consumer credit scores will drop. The scores drop because the algorithms will factor the negative credit tradeline back into the credit scoring model.

Mortgage Guidelines on Medical Credit Disputes

Medical disputes and non-medical credit disputes with zero balance are exempt from retraction. However, some lenders will have any and all credit disputes removed for the mortgage process to continue as part of their lender overlays. This can be a major disaster for borrowers who have a home under contract and are in the mortgage process.

Prior Derogatory Credit Items On Credit Report Does Not Affect Mortgage Approval

Borrowers do not have to remove prior bad credit issues such as bankruptcy, foreclosure, judgments, tax liens, collections, charge-offs, and late payments get home loans. Any derogatory credit tradelines that are older than 24 months old have little to no impact on consumer credit scores. Mortgage professionals can help borrowers who have low credit scores fix their credit problems. can boost borrower’s credit scores so they can qualify for the best mortgage program available at the lowest mortgage rates. Questionable negative items, including bankruptcies, judgments, charge-offs, repossessions, late payments, liens, foreclosure, and collection accounts may or may not be removed. However, credit disputes are not allowed during the mortgage process. The staff at Gustan Cho Associates work daily with consumers, attorneys, realtors, mortgage brokers, and loan officers in order to repair customers’ credit reports and raise FICO scores.  Please reach out to us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com.

Stay tuned: We have daily mortgage news on Gustan Cho Associates. Older blogs are always updated weekly. Stay on top of weekly blogs about credit, credit scores, re-establishing credit, and the latest mortgage guidelines.