When looking to get pre-approved for a mortgage, make sure you do not skip any steps. Missing one minor detail could cost you quite a bit of time, energy and money in the long run. Learn more about how Jeremy makes certain his clients and his trusted referral partners can count on his pre-approvals.

Reasons for Mortgage Pre-Approval | Disputed Tradelines

This is part 5 in my series about why not to skip a single step in the Arizona mortgage pre-approval process called “Reasons for Mortgage Pre-Approval.”  See the rest of the series.

Reason #2: Credit Tradeline Disputes 

Given all the changes in mortgage guidelines over the past few years, it is only natural that restrictions related to credit have increased. Oftentimes, a prospective home buyer does not know that certain pieces of information on their credit that seem insignificant can actually cause them to not be eligible for a mortgage.  For example, a disputed account or trade line can make it impossible for a buyer to get approved for a home loan.  If a borrower at some point found erroneous information on their credit report and decided to dispute it with the credit bureaus they may have unknowingly added great difficulty to the process of getting approved for a home loan.

The mere presence of a disputed trade line on a credit report will make it impossible to close on a new home loan in many cases. The dispute must be cleared up and removed before that buyer can proceed with the loan process. Typically, we can work with a client and the credit bureaus to remove the dispute and allow the prospective buyer to move forward with loan approval. However, the challenge is that if the disputed accounts are not discovered until late in the home buying process it may delay closing or worse yet, the problem may not be able to be fixed in time for closing.

These minor details can cause major hurdles when overlooked. Do not skip steps when getting qualified for a home loan! We can help you make sure that you have covered your bases!

By Jeremy House

Speak Your Mind

*