Home Loan With Mortgage Late Payment Guidelines

Gustan Cho Associates are mortgage brokers licensed in 48 states

In this blog, we will discuss and cover qualifying for a home loan with late mortgage payment in the past 12 months. Mortgage borrowers can qualify for home loans with prior bad credit. However, most lenders want to see timely payments in the past 12 months. Late Payments is extremely frowned upon by lenders.

Home Loan With Late Mortgage Payment Versus Other Types of Late Payments

Home Loan With Late Mortgage Payment Versus Other Types of Late Payments

The worst type of late payment anyone can have is a mortgage late payment. One 30 days mortgage late payment in the past 12 months may be okay. However, multiple mortgage late payments in the past 12 months are a no-go. Many lenders consider 120 day late payments on a mortgage the same as a foreclosure. They will mandate the waiting period to qualify for a mortgage after foreclosure. Although it is not a foreclosure, that is how seriously lenders take on mortgage late payments. In this article, we will cover and discuss qualifying for a mortgage with recent late payments.

Difficulty In Qualifying Home Loan With Mortgage Late Payment

A mortgage late payment should be avoided at all possible costs. Qualifying for a home loan with mortgage late payment will be challenging. Most lenders require 12 months timely mortgage payments to qualify for a mortgage loan. A mortgage late payment will show up on credit report for a period of 7 years. Should always make sure to make monthly mortgage payments on time. Mortgage late payment normally occurs when a homeowner is between the transition from one home to another home. It is common when the original mortgage payment is paid off and the homeowner waits for the new payment book.

One Late Payment Can Drop Credit Scores 50 Points

Timely mortgage payments have a great deal of weight on credit scores. One mortgage late payment will devastate credit scores by 80 points or more. When it comes to refinancing current mortgage loan with mortgage late payment, it will show up on credit report. The new mortgage lender will really not look at the mortgage late payment favorably.

Impact of Mortgage Late Payment 

No matter how old the mortgage late payment was, a late payment on a mortgage does not look good. There are some lenders that will understand one 30-day mortgage late payment. Others will not touch borrowers if they had a mortgage late payment within the past 24 months. Mortgage late payment on the credit report from lender needs to be addressed whatever possible, Try to contact the lender and see if they can do a one-time correction.

Qualifying For New Home Loan With Mortgage Late Payment

Qualifying For New Home Loan With Mortgage Late Payment

Those who are not habitual late payers and the mortgage late just got reported due to error, contact mortgage loan servicer and plead with them if they can remove the mortgage late payment from credit report for a one-time basis. Those who have a track record of paying mortgage payment on time, the lender can give a one-time reprieve and remove the late payment off the credit report. However, borrowers who are consistently late and have multiple mortgages late payment record, the chances are that they will not remove any mortgage late payments off the credit report. Mortgage companies do understand the severity of a mortgage late payment record and most will remove the late payment record.

Ask Creditor To Remove Late Payment Off Credit Report To Qualify For Home Loan With Mortgage Late Payment

If the mortgage company representative refuses to remove the one-time mortgage late payment history off a credit report, ask to speak to a supervisor. Please be extremely polite because the mortgage company is not obligated to remove mortgage late payment record off the credit report. If everything goes well and the lender agrees to remove mortgage late payment off a credit report, need to consider extremely lucky. Make sure to always make mortgage payments on time. Check credit report periodically to make sure there are no errors to qualify for a home loan with mortgage late payment.

When Mortgage Lender Makes Mistake In Reporting You Late

There are many instances where new mortgage loan borrowers are late on their first mortgage payments due to the mortgage lender. Mortgage companies need to send payment coupons to the new borrower. Many times, there is confusion about where the mortgage company sends the statements. Borrowers normally will request for mail to be sent to the new address. Or old mailing address in cases where the new homeowner remodels the house prior to moving in.

Reason For Late Payments on Mortgage Payments

There are cases where the lender sends it to the wrong address. Due to this matter, the mortgage payments get recorded late. Other times, since it is a new lender, the mortgage loan borrower sends their mortgage payments to a different location of the lender other than the bill payment center. On all the above examples, make sure to check your credit report. See that lender did not report late on the credit report. If the lender reported late, in almost 100% of the cases, the lender will remove the late payment from the credit report due to being a brand new mortgage loan.

Qualifying For Home Loan With Mortgage Late Payment With a Lender Lenient on Late Payments

Qualifying For Home Loan With Mortgage Late Payment With a Lender Lenient on Late Payments

One late payment in the past 12 months is not a deal killer for qualifying for a home loan with mortgage late payment. Gustan Cho Associates is a mortgage company licensed in 48 states with no mortgage lender overlays on government and conventional loans. We have zero overlays on FHA, VA, USDA, and Conventional loans. We just go off Automated Underwriting System Findings. We have helped countless borrowers qualify for a home loan with mortgage late payments. To qualify for a mortgage with a national lender with zero overlays, please contact us at The Team at Gustan Cho Associates at 262-716-8151 or text for a faster response. Or email us at [email protected]