Qualifying For Mortgage Loan With Recent Late Payments

This BLOG On Qualifying For Mortgage Loan With Recent Late Payments Was UPDATED On July 29, 2017

Mortgage Loan Applicants credit report and credit scores is the most important factor that creditors will evaluate when applying for mortgage as well as 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. 
  • Mortgage Loan Applicants who barely qualify for a mortgage loan with 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 for the mortgage loan. 
  • Most lenders want to see timely payments in past 12 months.
  • There are steps to take for borrowers 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.

Contact Creditor

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 and they will 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 and as a courtesy will remove the recent late payment off credit report. 
  • Consumers with prior late payments and a habit of paying late, creditors will most 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 Mortgage Loan With Recent Late Payments is not an automatic disqualification.
  • The Automated Underwriting System will render a decision with regards to qualifying for mortgage loan with recent late payments.

Credit Disputes During Mortgage Process

A recent late payment will definitely drop credit scores and can delay the mortgage application process.

  • If the creditor is not willing to remove the recent late payment off credit record, the other choice is to wait out the late payment with time. 
  • As time passes late payment 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 will be applying for a home loan soon.
  • Again, this takes time and mortgage application process will come to a halt because credit disputes are not allowed during the mortgage application process.

Secured Credit Cards To Improve Credit Scores For Mortgage Loan With Recent Late Payments

A great option to offset the late payment and boost credit scores and qualifying for Mortgage Loan With Recent Late Payments is by getting several secured credit cards.

  • The positive impact the secured credit cards will have will offset the negative impact the late payment has caused on credit scores.
  • Get three secured credit cards with at least $500 credit limits.

Related> Good Credit But Recent Late Payment

Related> Recent Late Payments

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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