     Tracey D. M. (Traced) | Monday, September 25, 2000 - 08:54 pm 
I am in the process of purchasing my first home. Two months ago, I had an Equifax credit report pulled. My Beacon score was 660. Not great, but I could get a loan without a problem.
Last week, the Mortgage company pulled a Merged report. My Beacon score had dropped to 599. I had made no "financial changes" that would have caused my Beacon score to drop.
More surprisingly was the erroneous information listed on my credit report. All three agencies had me listed differently.
Experian: Has me with two Social Security numbers. One is truly mine....the other is a HUGE question. In addition, Experian has me listed as owning credit cards for Department Stores that I have never owned. One is listed as originating in 1979 (I was only 14 years old in 1979).
Trans Union: Lists me as having a "charge-off" for AT&T Wireless. I have never owned an AT&T wireless phone. I have a wireless phone. It was purchased well after the date of the AT&T charge-off. My cellular phone payment has never been a day late. Trans Union also has me living at an address other than my current address. According to Trans Union, I have lived at the "bogus" address since August 1st. WRONG. Unless I have been lost in Outer Space, I have been planted in the same home for quite some time. There are also some delinquent medical bills showing up. Those bills amount to some $1300.00. One is to a Cardiologist. I am healthy!! I have never seen a Cardiologist!!
Equifax: Says I am 49. I am 35. There is only one delinquency being reported by Equifax and that is a $70.00 medical bill that IS MINE and that I paid. My Insurance company took forever to pay their part......so my part was, according to the hospital, delinquent. I have the cancelled check to proove my payment for the $70.00 bill.
How do I get rid of the erroneous information? My income will exceed $100,000.00 this year. I MUST purchase my home before the year ends. Otherwise, Taxes are going to eat me alive.
I have been approved for a home loan, but the 95% financing dropped to 90% because of these "new findings". In addition, I am now being forced to borrow from a "B" lender instead of the "A" lender I had been approved to borrow from prior to these changes. Do I purchase with the idea to refinance in 6 months? I was told that it will take at least 6 months to clear the mistakes off of my credit report. I will pay more in Taxes if I do not buy, than I will in interest if I buy now at the higher rate.
Advice will be greatly appreciated. |
| Don Semler (Dsemler) | Thursday, September 28, 2000 - 07:01 pm
Pardon my blunt response,but you appear to have a bunch of morrons working on your loan. If you would like you may email me outside this forum or post Q&A here.
First, whoever your lender/broker was made a very stupid mistake by pulling just a single report initially. This is also sometimes used as a "bait and switch". If they know the rule is to use the middle score of the three, why lead you in with just one score.
Second, if in your discussion with them initially they were able to make a case that you would be 'A" borrower, they should have run you though LP or DU which are the automated approval systems by FNMA and FHLMC. Once run through, these approvals are good for 90-120 days WITHOUT the need to re-pull credit.
Third, If the credit report is scewed up, they should ask you to pay $45-50 to have what is called and RMCR or "Full Factual" done. This should take no mroe than 3-4 days. With these reports, EVERYTHING is re-verified by a live person. Technically FNMA and FHLMC DO NOT have stated minimum scores thus a RMCR and a good package could overturn a CAUTION reponse from LP or DU and thus entitle you to "A" rates.
Fourth, I doubt you were approved by the "A" lender initially. If so, ask for the written approval from the LEDNDER NOT the broker. Be surprised if they could give it to you.
Fifth: Don't do purchase with the idea of refinancing in 6 month. I would bet money that the "B" lender also has a prepay penalty. This is also a way for the broker to churn you for two deals instead of just one.
Sixth: You aren't going to get anything in the way of tax benefits this year. If you closing is in OCT, you'll have only paid 2 months worth of interest and probably little in prop taxes. Your standard deduction will probably still be higher. Next year you will benefit.
Finally, this deal smell of lazy lender trying to justify a high fee.
Good luck |
