How Credit Report Errors Can Impact Mortgage Approval

Errors on your credit report can lower your credit score, increase your interest rates, and directly affect your mortgage. In fact, a mistake on even one of the three primary credit reporting bureaus can interfere with or completely shut down your home purchase. Turn to our experienced South Carolina fair credit reporting attorney at Hays Cauley, P.C., for the help you need.

Your Credit Score

Purchasing a home signifies an important transition in your life, but if your credit report has errors, it can also be very stressful. The bottom line is that your credit score will guide the process, and any errors can lead to serious problems like the following:

• Higher interest rates that can cost you tens of thousands over the life of your mortgage
• Disputes that slow the loan process and could lead to the house of your dreams being sold out from under you
• An increased ratio of debt to income that can be too high for mortgage approval

Unfortunately, credit reporting errors are not particularly uncommon. Consumers are, however, protected by the Fair Credit Reporting Act (FCRA), and a seasoned fair credit reporting lawyer will spare no effort in their quest to help.

Errors to Be on the Lookout For

Some credit reporting errors are glaring, like a loan in your name that isn’t yours, and that isn’t being paid off, which is generally a sign of identity theft. There are, however, more subtle concerns that can also interfere with your ability to buy a home.

Information that Should Have Been Removed

A defaulted loan, bankruptcy, or foreclosure will absolutely hurt your credit score, but it shouldn’t hang on your credit report forever. Generally, these must be removed after 7 to 10 years.

Inaccuracies

Inaccuracies on your credit report can lead to problems with your mortgage, and the related concerns tend to build over time. Prime examples include all the following:

• If your name is incorrect, such as if it’s misspelled or includes the wrong middle initial
• If your address is old or otherwise incorrect
• If the information in your file is combined with someone else’s, often this means someone with a similar name or SSN
• If payments that you made on time are marked as late or delinquent
• If accounts are listed incorrectly, such as closed accounts being listed as open and vice versa
• If the balances listed are incorrect or the credit limit reported is wrong
• If the same account is listed multiple times

A capable fair credit reporting attorney will help resolve your concern as effectively and efficiently as possible in support of a more streamlined mortgage process.

It’s Time to Consult with Our Experienced South Carolina Fair Credit Reporting Lawyer

Penny Hays Cauley is our knowledgeable South Carolina fair credit reporting attorney at Hays Cauley, P.C., and she dedicates her imposing practice to helping clients like you resolve credit report errors in support of brighter financial futures, including in relation to home buying. Learn more by contacting us online or giving our firm a call at 843-665-1717 today.