If you’re looking to buy a home or refinance your mortgage, you’ve likely checked your credit report and felt a sinking feeling seeing a late payment, a collection account, or another negative mark. Your immediate thought is probably, “Can I just get this removed?” The answer is not a simple yes or no, but understanding the process is crucial for any homeowner. In short, you can sometimes have negative items removed, but it depends entirely on whether the information is accurate and how you approach the situation.First, it’s important to know your rights. A law called the Fair Credit Reporting Act gives you the power to dispute any information on your credit report that you believe is inaccurate, outdated, or unverifiable. The credit bureaus are required to investigate your dispute, usually within 30 days. If they cannot confirm that the information is correct, they must remove it. This is the legitimate and most common way to have negative items removed. For example, if a credit card company reports a late payment from a month you know you paid on time, you can dispute it. If the lender cannot provide proof of the lateness, the bureau will delete the entry.However, if the negative item is accurate and timely, it is much more difficult to have it removed. Negative information like late payments, foreclosures, and most collections stay on your report for seven years from the date of the first missed payment that led to the status. Bankruptcies can remain for up to ten years. During that time, if the information is being reported correctly, the credit bureaus have no obligation to remove it. You may see companies advertising “credit repair” services that promise to erase accurate negative items for a fee. Be very cautious of these services. They often use questionable tactics, like flooding the bureaus with repeated disputes, and they cannot do anything you cannot do for yourself for free. In many cases, they take your money and deliver little to no result.There is another scenario, often called “goodwill deletion” or “pay for delete.” This involves contacting the original lender or collection agency directly, not the credit bureaus. If you have an old debt that went to collections, you might try negotiating with the collector. You could offer to pay the debt in full or settle for a lower amount in exchange for them requesting that the collection account be removed from your credit reports. Be aware that not all collectors agree to this, and you must get the agreement in writing before you send any payment. Similarly, for a late payment with a lender you still use, you can write a goodwill letter. This is a polite letter explaining the circumstances of the late payment (like a temporary job loss or medical issue), highlighting your otherwise perfect payment history, and asking them as a gesture of goodwill to request the bureaus remove the late mark. This is a long shot, but it sometimes works with smaller lenders or if you have a long-standing relationship.The impact of removing a negative item, especially an older one, can be significant for your mortgage application. Your credit score is a major factor in your mortgage interest rate. Even a small increase in your score can save you tens of thousands of dollars over the life of a loan. Therefore, it is absolutely worth the effort to review your reports from all three bureaus—Equifax, Experian, and TransUnion—for errors and dispute them. You can get free reports annually at AnnualCreditReport.com.In the end, your best strategy is a combination of vigilance and patience. Start by cleaning up any inaccuracies through the official dispute process. For accurate negative items, focus on building positive credit history over time. Consistent, on-time payments on your current accounts are the most powerful tool you have. As negative items age, their impact on your score lessens. So while you may not be able to magically erase a financial misstep, you can absolutely overcome it with responsible behavior. When you sit down with a mortgage lender, being able to show a recent history of perfect payments and a clean, accurate credit report will put you in the strongest position possible to secure the best loan for your new home.
Interest-only mortgages are not for everyone and are typically considered by sophisticated borrowers with a clear and robust repayment strategy. They can be suitable for: Sophisticated investors who can use their capital to generate a higher return elsewhere. Individuals with irregular but large incomes, such as bonuses or commission. Borrowers who have a guaranteed future lump sum, like an inheritance or maturing investment. Buy-to-let investors who plan to sell the property to repay the loan.
Mortgage rates are based on long-term expectations, primarily for the 10-year Treasury yield. If the Fed raises short-term rates to fight inflation but investors believe this will slow the economy and lower future inflation, they may buy long-term bonds, driving their yields (and mortgage rates) down. Conversely, if the Fed is on hold but strong economic data suggests future inflation, mortgage rates can rise in anticipation of future Fed action.
Absolutely. This is often where brokers provide significant value. They have access to specialist lenders who are more flexible with their lending criteria for self-employed individuals, those with irregular income, or people with a less-than-perfect credit history. They know which lenders to approach and how to best present your application.
No, one type is not inherently better. The “best” loan is the one that is most appropriate for your specific financial situation and homebuying goals.
Choose a Conforming Loan if you have strong credit, stable income, and are buying a home within the local loan limits. You will likely get the best available terms.
Choose a Non-Conforming Loan if your needs are outside the norm—you’re buying a high-value property, have unique income, or need more flexible underwriting. It provides the necessary flexibility when a conforming loan isn’t an option.
An escrow surplus occurs when there is more money in the account than is needed to cover the projected bills. If the surplus is over a certain threshold (usually $50), the lender is required by law to send you a refund check. If the surplus is smaller, the amount may be credited back to your escrow account, potentially lowering your future monthly payments.
