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Haven't applied for the mortgage pre-approval yet. Should we dispute or go ahead?
Hi all. We're going to apply for a VA loan in Texas, sometime between now and March. My husband has one credit card collection for approximately $4,300 that *should* come off his report next month (10/2016). He has one other auto collection for $2,400 that is getting close to 7.5 years (probably around 01/2017); however, we just noticed this same collection was reported by another debt buyer as opened in July 2016. It is duplicated on his TransUnion report and is obviously a case of re-aging as well as duplicating.

I've researched this up and down and just can't seem to decide if we should dispute or go ahead with pre-approval and see if it matters. I've spoken to a VA approved lender here and told him the general picture of the old collections. He says that generally old collections, if under $5,000 total, will not be an issue with the VA loan. I do not know if there will a place on the pre-approval application to add comments explaining the duplicate debt (which took a lot of work to determine what account it was) and re-emphasize that he has had zero derogatory remarks in the last 7 years.

I know we shouldn't dispute after applying but what I can't determine is, would it be better to try to get these things off before applying or go ahead and see if we get pre-approved without disputing. And also wait til October in hopes that the credit card debt gets removed on schedule. I really don't want to get pre-approved and denied when it comes to the underwriter.

Sorry if this question is a total repeat. I've read so much and seem to get more confused and indecisive the more I read. Thanks!

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When the mortgage broker goes through your credit report,it will be with a fine tooth comb and everything will come into question.  The VA is the guarantee on the loan, however the mortgage firm will be holding the difference and it will be just as thorough as a convential loan.  I would wait for the the items to roll off the credit report before I went for the pre-approval.   In fact, I would generate the necessary disputes to send in immediate at the 7 year mark.  I would not wait for them to roll off natually.   The refile of the July 2016 could be a different matter, however, depending upon the Statute of Limitations in Texas as well as the state where you incurred the debt, I would dispute that as well for validity just as soon as the other entries were removed.   

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