“I disputed some accounts on my credit report before applying for a mortgage. Will that cause a problem?”
It depends.
Having disputed accounts doesn’t automatically mean you can’t qualify for a mortgage. However, depending on the loan program and the type of account being disputed, your lender may need to review the dispute before your loan can move forward.
Why Does It Matter?
Mortgage lenders need to evaluate an accurate credit profile. In some cases, an active dispute could affect how certain information appears on your credit report.
Depending on the loan program, you may be asked to remove a dispute or provide additional documentation before closing.
Should I Remove the Dispute?
Not necessarily.
If you’re disputing information because it’s genuinely inaccurate, you shouldn’t automatically remove the dispute.
Instead, discuss it with your loan officer first. Every situation is different, and the best course of action depends on the loan program and the reason for the dispute.
My Advice
If you already have disputed accounts on your credit report, don’t panic.
The best thing you can do is let your loan officer know early in the process. In many cases, it’s much easier to address the issue before you’re under contract than a week before closing.