FHA Mortgages

FHA Dwelling Loans: Why You Want To Overview Your Credit score Report Now


Why is it so important to check your credit report well before applying for a mortgage? A big reason – which you read in almost every advice-on-topic article – is to start reviewing your credit early in case you need to contest any point on your report.

But what if you find bugs, outdated information, or evidence of identity theft?

In the 21st century, the chances of having some or even all of them on your credit report are increased due to hackers, accidental personal data breaches, or even confusion.

So what should a prospective borrower do if they discover problems with their credit report?

The first thing to do is remember that you need to check all three credit bureaus to see if the errors are in multiple credit reports and what to do if they do.

And there are other steps. For any credit reporting agency – Equifax, Experian, and TransUnion, here are the steps you should take:

Visit the dispute settlement offices of every Schufa

Every credit reporting agency should have a complaint or dispute resolution center where you can report problems with your credit reports.

If there are issues with your report, you’ll need to re-file, but make sure you are allowed to file one report for multiple issues (assuming there are multiple entries that need to be corrected) or whether you need to file a single dispute for every single problem.

Gather and submit your evidence

You may be asked to provide evidence to support your claim. You may need to make statements and send in copies (never originals) of any documentation you have as evidence.

Give the system enough time to work

Some make the mistake of assuming that they can apply for a larger loan application like an FHA mortgage or even a car loan after disputing part of their credit report (s). But until your dispute is resolved, filling out the home loan documentation is a bad idea.

Your lender may not be able to take out the new loan until the process is complete.

And while you may find general promises regarding the timeframe for these cases (for example, Experian says that “generally” all disputes are resolved in about a month), there may be aggravating factors that can make the process longer.

In such cases, if you are unsure about the timing of a loan application, seek advice from a participating FHA lender on when to file in accordance with the lender’s standards, applicable state laws, and FHA loan rules. You’ll be glad you did.