Mortgage Loan With Recent Late Payments Guidelines
This guide will cover qualifying for a mortgage loan with recent late payments. Mortgage Loan Applicants’ credit reports and scores are the most important factors that creditors will evaluate when applying for a mortgage and other credit. A recent late payment will plummet credit scores by more than 80 points or more. The higher the credit score, the more of a positive impact it will have. John Grimaldi, the Chief Operating Officer at Superior Lending in Las Vegas, made the following statement about recent late payments on credit bureaus:
Mortgage Loan Applicants who barely qualify for a mortgage loan with a current credit score need to be on alert not to be late on any debt payments that report to credit bureaus. A recent late payment can instantly disqualify borrowers from the mortgage loan
Most lenders want to see timely payments in the past 12 months. There are steps to take for borrowers to have a recent late payment and are or were planning on applying for a residential mortgage loan. Mortgage Loan Applicants should explore the idea of reversing the late payment if at all possible. This article will cover and discuss Mortgage Loan With Recent Late Payments Guidelines.
How To Get Approved For a Mortgage With Recent Late Payments
Consumers who had a credit account for some time and had a good payment history with the creditor but just got that one recent late payment contact the creditor. They may give a one-time reprieve and have the late payment reversed. There are times when a creditor will give a consumer a one-time reprieve. Denise Willow of Supreme Lending said the following about ways how to remove recent late payments on your credit report.
Creditors may give a one-time reprieve as a courtesy will remove the recent late payment of the credit report. For consumers with prior late payments and a habit of paying late, creditors will likely not remove the late payment. I would try to have it removed, and if the creditor will not, ask to speak to a supervisor and plead with the supervisor.
Qualifying For a Mortgage Loan With Recent Late Payments is not an automatic disqualification. The Automated Underwriting System will decide about qualifying for a mortgage loan with recent late payments. Having one or two late payments is not always a deal killer. You can qualify for a mortgage loan with recent late payments if you put in a large down payment. Non-QM loans is an alternative non-prime mortgage program for borrowers who want to qualify for a mortgage loan with recent late payments.
Mortgage Loan With Recent Late Payments And Credit Disputes
A recent late payment will drop credit scores and can delay the mortgage application process. If the creditor is unwilling to remove the recent late payment of the credit record, the other choice is to wait out the late payment with time. John Grimaldi of Superior Lending made the following statements about late payments and how it impacts credit scores:
As time passes, late payments will have less and less impact on credit scores. It might take several months for credit scores to start improving again
Another option consumers have is to get the late payment record deleted by contesting it with the credit bureaus. This tactic is not recommended if consumers apply for a home loan soon. Again, this takes time, and the mortgage application process will halt. This is because credit disputes are not allowed during the mortgage application process.
Late Payments After Bankruptcy And Foreclosure
Borrowers can have bad credit and late payments and qualify for a mortgage. However, we cannot have late payments in the past 12 months. Late payments after bankruptcy or foreclosure are definite deal killers by most lenders. Late payments after bankruptcy or foreclosure are allowed at Preferred Mortgage Rates with an approve/eligible per automated underwriting system. Not many lenders will approve late payments after bankruptcy or a housing event. Gustan Cho Associates is one of the few national lenders that will allow it.
Secured Credit Cards To Improve Credit Scores For Mortgage Loan With Recent Late Payments
Getting several secured credit cards is a great option to offset the late payment, boost credit scores, and qualify for Mortgage Loan With Recent Late Payments. The secured credit cards’ positive impact will offset the negative impact the late payment has caused on credit scores. Get three secured credit cards with at least $500 credit limits. Angie Torres of Preferred Mortgage Rates explains how credit rebuilder accounts work:
Most credit builder account will issue a secured credit card after the consumer makes four or five monthly payment. The security will come out of the monthly payment the consumer has been paying.
Besides getting three to five secured credit cards, get a few. A credit builder account is a bank savings account. The bank will require a minimum of 25 dollars per month. Credit builder accounts are when you make nominal monthly payments. The monthly payment is a savings account. That payment reports to the credit bureaus as an installment loan payment. After one year of making the payment, the bank will return the entire amount to you. For more information about this guide or have credit questions and want to start the mortgage loan application process, don’t hesitate to contact us at Preferred Mortgage Rates at 866-90-RATES. Text us for a faster response. Or email us at rates@gustancho.com.