Late Mortgage Payment Can Affect Qualifying For New Mortgage
Late Mortgage Payment needs to be avoided at all costs. A late mortgage payment is considered any late mortgage payment that has been 30 or more days late. Late mortgage payment will be reported on all three credit reporting agencies; Transunion, Experian, and Equifax and will remain on your credit report for 7 years. There may be extenuating circumstances where some unexpected bills may have come up and you may be short of paying your mortgage payment and may need a little time. Before you make late mortgage payment, contact your mortgage loan provider and talk to them if there are any arrangements you can make where they will give you a one time reprieve where the mortgage loan servicer will not report you 30 days late on the three credit reporting agency. Every mortgage lender have their own policies in reporting the payment history of their borrowers and some mortgage lenders can work things out with the borrower when it comes to a late mortgage payment.
Late Mortgage Payment And Grace Period
If you currently have a home mortgage loan, the mortgage payment is due on the first of every month. However, mortgage lenders will give you a grace period of 15 days to pay for your mortgage payment and will consider it on time as long as you pay by the 15th of the month. Mortgage payments received on the 16th and up to the end of the month will be assessed a late charge but will not be reported on the credit reporting agencies. Monthly late mortgage payment late charges is normally 5% of the monthly mortgage payment amount. If you have only had one late mortgage payment and pay it before it is 30 or more days late, you can request your mortgage loan servicer if they can waive the late charge. Most mortgage lenders will waive one or two late charges per year if you have been an on time payer. If your mortgage payment is not received by the 30th or 31st of the month and is received the following month, then you will have a 30 day late mortgage payment that will be reported on your credit report which is what you want to avoid at all possible costs.
Credit Impact On Late Mortgage Payments
As long as your mortgage payments is not more than 30 days late, there will be no impact on your credit. However, one late mortgage payment will definitely not only plummet your credit scores but will have negative consequences in obtaining a home loan and the late mortgage payments history will remain on your credit report for a period of 7 years. If you plan on obtaining a new mortgage loan but have late mortgage payments on your credit report, you cannot qualify for a home loan if you had late mortgage payments in the past 12 months. Some mortgage lenders will not accept any mortgage loan applicants who had a 30 day late mortgage payment in the past 24 months. Late mortgage payments is one of the worst negative credit items you can have on your credit report and will definitely affect you when trying to qualify for another home loan. If you were to sell your current home and purchase a new home, you will not be able to qualify for a new home loan if you had multiple late mortgage payments history in the past 12 months on the home you have sold even though the mortgage balance has been paid off.
One Late Mortgage Payment In Past 12 Months
As mentioned earlier, many mortgage lenders have their own mortgage lender overlays when it comes to qualifying a mortgage borrower for a new mortgage loan with prior mortgage late payments. However, we can accept a mortgage loan borrower who had one late 30 day late payment on their mortgage in the past 12 months. Some mortgage lenders will not accept any borrowers who had a mortgage late payment in the past 24 months or even 36 months. Mortgage late payments are taken extremely seriously by mortgage lenders. If you had a mortgage late payment and need to qualify for a home loan, please contact us at Gustan Cho Associates at 262-716-8151. We are available 7 days a week, evenings, weekends, and holidays. You can also email us at GustanCho@Outlook.com if you have any questions or want to go over any case scenarios.