A Miami Home Loan Requires Good Credit

 A Miami home loan in South Florida home loans require good credit, and generally, with no disputes or collections outstanding on the credit report.  So, the best solution to confirming a clients credit report is acceptable is to complete an application, and then review you credit report with a professional loan officer.  This is also the first step in getting pre-qualified for a Miami home loan.

 Effective immediately, FHA loans with disputed accounts no longer require a manual downgrade provided the following requirements for the disputed account(s) have been met:

1. The disputed account has a zero balance or

2. The disputed account is marked as “paid in full”, or “resolved” or

3. The disputed account is both

a) less than $500, and

b) more than 24 months old, based on the date of dispute.[1]

 With these new guidelines, a Miami Home loan still requires a skilled loan officer to guide you through the process of helping a buyer with a disputed account.  This is excellent to know, but, there are still some Do’s and Don’ts regarding processing a disputed account.  Here are the most important points to know:

  1. Dispute with the credit bureaus first.  Pursue the bureaus first prior to going directly to the company being disputed.  This will expedite removing any items that do not belong on the report.  You will also save a lot of time with collectors or collection agencies that either:
    • No longer exist
    • They do not have your records on file any longer.
  2. Not all creditors report to all three agencies.  When disputing accounts or reviewing disputed accounts, ONLY dispute the account with the credit bureau that actually has the item reported.  If you send information to an agency that does not have the item reported, they might actually begin to report the item, which will definitely lower your current score.
  3. Send Certified.  Send all correspondence certified to the bureaus.  It has been my experience that when a credit bureau receives correspondence certified, they take it seriously and are likely to pay attention, and respond more quickly.

It is not necessary to pay additional fees for a registered returned receipt.  This provides proof they received your letter, and, you can print a certified tracking receipt from the post office after delivery.

4.   Refer to dispute identifiers.  The dispute identifier is a number assigned to a credit report by the credit bureau for identification purposes and for tracking disputes.  Each bureau labels its dispute identifier numbers differently as follows.:

      • Equifax – Confirmation No

      • Experian – File No.

      • TransUnion – Report No.

5. Avoid being labeledFrivolous.”  Sending credit bureaus multitudes of dispute letters is the worst strategy you could use.  The credit bureau has the right, under the Fair Credit Reporting Act, to deem a dispute frivolous or irrelevant.  If you attempt this tactic, without supporting documents the bureau can refuse to investigate the case.

6.   Send proof of social security and proof of current address with every letter  you send to the credit bureaus.

7.   Don’t dispute items together with someone else!  You and your spouse must dispute items on your credit report individually, as that is how it is reported.  Otherwise, you run a risk of the credit bureaus crossing the data from one person to the other.

8.   Never send original documents that support your claim.  Only send the copies and keep the originals.

9.  Be realistic, don’t give up.  Follow-through.  Continue to work the file, because there are time frames for each company with a disputed account to respond.[2]

 As we mentioned previously, a Miami Home loan, requires a good score and a relatively clean credit report.  These suggestions offer the tools to get started on the process.  And keep in mind that long-lasting credit improvement takes time.  We look forward to helping out clients achieve a good score, so they can all be approved for a Miami Home Loan.

[1] Disputed Accounts, EF Credit Risk Memo, 07-14-11

 [2] The Big Score, Chapter 22, Step 8 – Disputing Do’s and Don’t, Page 263-264.

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