As a prospective home buyer considering a mortgage there are a few important points to remember when you have disputed credit accounts on your credit report. If you have ever disputed a credit account, whether justified or not, resolved or not, when your FICO credit score is calculated, those disputed accounts are excluded. So, in a lender’s eye, your credit score may be inaccurate without those disputed accounts added back in to the score.

The guidelines on how to handle such cases vary based on the loan program and the lender. Specifically regarding VA loans, there are no governing guidelines on how to handle disputed accounts; however your loan application will be manually reviewed by an underwriter. If the underwriter believes that the disputed account has an impact on your overall credit picture they may manually downgrade the credit score. However, there is no automatic requirement that they do so.

What can you do? If you have any disputed credit accounts, whether resolved or not, make sure to collect all of the documentation you have about the dispute in the event that the underwriter asks for supporting documents. Also, if at all possible, consider refraining from making credit disputes before you apply for a mortgage. Unless you suspect fraud, theft, or any other criminal activity, you may want to wait to launch new disputes. Remember to keep detailed notes anytime you file a dispute with the credit bureaus.