With tools like Credit Karma, it’s easier than ever to view your credit — but that has also led to a rise in credit disputes, not all of which are necessary. While it might seem like a good idea to challenge questionable items, only dispute accounts you know are inaccurate.
Here’s why: When you dispute something, it can be temporarily removed or altered on your credit report. That might confuse underwriters and delay your mortgage approval.
For example, for Fannie Mae, disputed accounts can create extra work for lenders. If the item turns out to be valid, you may be required to remove the dispute and reprocess your application — extending the timeline.
The same goes for Freddie Mac, FHA, USDA and VA loans. Disputes can trigger manual underwriting or require extra documentation. Unless an account is clearly wrong, it’s usually better to leave it alone.
Need help reviewing your credit before applying? Talk to one of our mortgage experts. We’ll walk through it together and help you avoid anything that could delay your loan.
