Credit Repair for Mortgage Approval

P

Parker1985

Member
Reached out to a local mortgage lender to get some guidance on my credit situation and what I'd need to fix in order to qualify for a loan. I know that technically it's not their job to walk me through credit repair, but I just needed someone to point me in the right direction. My income and credit score aren't the issue the problem lies with a few collections and charge-offs still lingering on my report. The lender seemed open to helping and said he'd review my credit and go over it with me. So I unlocked my credit profiles and I think he did a soft pull.

But after that, I didn’t hear anything back right away. I ended up following up with him the next week to ask if he’d had a chance to look and what the next steps were. That’s when he told me he’d be referring me to someone on his credit repair team. That’s kind of what I expected, and honestly, it’s not necessarily a bad thing but it got me wondering: Is hiring a credit repair service actually necessary, or is this something I could realistically handle on my own?
I know some people pay for convenience or expertise but are the results really worth it?
 
Honestly i was in a similar boat. Had charge-offs from years ago and a couple of $100 collections. I hired Lexington Law out of panic and while they did remove some stuff, most of what got deleted were small or already outdated. If you're detail-oriented and have patience, you can DIY it. Dispute inaccurate items, settle old debts (get pay-for-delete in writing!) and keep your utilization low.
 
The thing about mortgage lenders is that they want clean reports, not just high scores. You could have a 700 but with recent charge-offs, and still get denied. The lender passing you off to the credit team is pretty normal...many work with in-house or partner repair companies. Just be cautious. Some services charge monthly without results. DIY with tools like Credit Karma and annualcreditreport.com is totally doable.
 
Not trying to be all conspiracy-theory but these credit repair teams lenders refer you to are often kickback partners. I’d take their recommendation with a grain of salt. You can absolutely do this yourself dispute errors, ask for pay-for-deletes, and keep everything documented. YouTube is loaded with solid step-by-step guides for this stuff.
 
Dude I had like 5 collections totaling $3,200. I called them one by one, negotiated for deletions, and paid off three of them. Two were already set to fall off in a year so i left them. No credit repair agency involved. I closed on a house six months later. You can absolutely DIY it....it just takes time and a spreadsheet to track everything.
 
Credit repair companies use the same dispute system you have access to. They're not magic. What you're paying for is convenience and persistence. If you're not gonna follow up or don’t have time to research, then maybe it's worth paying. But if you're even semi-organized? Save the money.
 
Empathizing hard with you here. I reached out to a lender before i felt ready just to get clarity, and the silence afterward was nerve-wracking. I felt ghosted too until i realized they just wanted someone mortgage-ready. It’s not that they’re trying to be shady....it’s just not their job to hold your hand through cleanup unless you're a hot lead.
 
This is what I tell my friends: if it's identity theft or super complex stuff, maybe consider hiring help. But if it's just charge-offs and collections, Google is your friend. There's a subreddit called r/personalfinance and r/CRedit—both have sticky posts with sample letters and strategies. All free. All better than shelling out $99/month.
 
You might not need a credit repair service but it depends on your patience threshold. I was so overwhelmed that I hired one. Did they help? Somewhat. But i also kept track of their disputes and realized I could’ve done it myself. At the end of the day, you’re paying for the convenience and maybe a bit of hand-holding.
 
Not gonna lie i thought credit repair was a scam until I actually tried one. Credit Saint got a couple of items removed but i also learned a lot about how to maintain my credit going forward. I consider it an expensive crash course. Wouldn’t use one again but it helped back then when i was clueless.
 
Lenders are legally not supposed to give too much detailed repair advice because it gets into credit counseling territory. That’s probably why he passed you to the credit team. Liability stuff. But yes you can fix this yourself. It’s not always fast, but it’s not rocket science either.
 
Honestly sounds like your lender handled it pretty professionally. A lot of them would’ve just said come back when your score’s higher and moved on. At least he pointed you toward some help. Whether you take it or not is up to you but it’s not a red flag IMO.
 
I’ve been using Credit Karma + Experian app + a spreadsheet to track and manage everything. I send disputes through mail and follow up every 30 days. Removed two paid collections this way. Also froze LexisNexis and SageStream before disputes...seemed to help. No company involved.
 
if the charge-offs are over 24 months old, they may carry less weight. But if they’re recent, especially within the past year, underwriters might want them paid or settled before moving forward. Ask the credit repair team if they negotiate pay-for-delete. If not then skip.
 
Some lenders require collections over a certain amount to be paid even if they’re older. Mine had a $2,000 threshold. I had to clear 2 accounts before i could get approved. Talk to the repair team and ask what their timeline and strategy is. Don’t just pay without negotiating deletions.
 
Be careful with some of these companies promising 100-point boosts in 30 days. That’s marketing fluff. Legit repair takes time. Some charge-offs stay even after you pay unless the lender agrees to remove it. You need deletions not just paid.
 
Man i remember the anxiety of unlocking my reports and waiting for the verdict. It’s like handing over your report card to a teacher. Props to you for taking action though. That’s the hardest part. You’ll get there.
 
If you’re semi-tech-savvy, there are tools like SmartCredit and MyFICO that can track disputes and generate letters for you. Cheaper than repair firms and keeps you in control. I used MyFICO to simulate changes before making any payments.
 
I did DIY repair for 6 months and saw more progress than my sister who paid $1200 for a repair service. The difference i cared more about the outcome. No one will fight for your credit as hard as you will.
 
You must log in or register to reply here.
Back
Top