Qualifying for a mortgage loan today is without a doubt much more difficult than say six or seven years ago. And that’s a good thing, not a bad thing. We all know what happens when banks issue loans to people that have demonstrated a history credit scores and credit explanationsof poor credit management.

Yet bad credit can really happen to almost anyone when certain events cause consumers to have late payments such as a loss of job or a divorce situation. In fact, you may have had an offer on one of your investment properties only to find out later that the borrower’s couldn’t qualify due to their credit scores. Credit scores aren’t necessarily a death knell as they’re fluid but borrowers can take steps to get their scores back up where they need to be. Sometimes it’s nothing more than a dispute with a creditor.

The first thing a consumer is told when they have a dispute with an account listed on their credit report is to write a letter to the credit bureau explaining your side of the story. For instance, you apply for a home loan to buy a duplex but your application is denied because of credit issues.

You’re surprised so you ask for a copy of your credit report and you immediately identify the problem. That same creditor that keeps popping up on your credit report that was closed out a long time ago. You say you closed it out but the creditor says otherwise and there’s still a $199 balance.

You disagree and write a letter to the credit bureau. But credit scores don’t read letters; there’s nothing that a letter can do. If a mortgage requires a 640 credit score and yours is 600 all due to an argument with a creditor, it’s really not going to matter. The bank has an obligation to approve a loan with a certain score and reading a letter isn’t going to help.