Is It Possible To Qualify For Mortgage With Recent Late Payments?

Qualify For Mortgage With Recent Late Payments

Residential mortgage lenders really frown upon late payments when they review a borrowers overall credit report and need to qualify borrowers for mortgage with recent late payments.  Many mortgage lenders will not qualify for mortgage with recent late payments for mortgage loan borrowers who had a late payment after a bankruptcy or foreclosure. Lenders view borrowers who had any late payments after bankruptcy and foreclosure a repeat offender and will not go further with the loan process even though they have an approve/eligible per Automated Findings. This is due to the lender overlays. Good news is that lenders like The Gustan Cho Team at CrossCountry Mortgage Inc. NMLS 3029 has no overlays and as long as the Automated Underwriting System will render an approve/eligible per AUS Findings with late payments after bankruptcy and foreclosure or recent late payments, we will proceed with the mortgage process and can approve the borrower.  Other mortgage lenders will not accept any mortgage loan borrowers with any late payments in the past 12 months and any late payments after a bankruptcy and/or foreclosure will be an automatic disqualification and a mortgage loan denial.  History of late payments are viewed as financially irresponsible people and most underwriters will use this fact against them in denying a mortgage loan.  It is very difficult to qualify for a mortgage with recent late payments but not impossible depending on the circumstances. Borrowers with recent late payments or late payments after bankruptcy or foreclosure definitely needs to consult with a loan officer and lender who has no overlays. There are stages of late payment histories.  A borrower can be 30 days late, 60 days late, or 90 or more days late.  Even if the mortgage loan borrower has come current with the late payments, it is too late and will be recorded on their credit report and will be used against them.

What Action Should I Take To Qualify For Mortgage With Recent Late Payments

The first step you should take is to get your credit report from all three credit reporting agencies;

  • Transunion
  • Equifax
  • Experian

Carefully review each credit report and each tradeline carefully and see which creditor has reported you late.  A recent late payment will substantially drop your credit scores but the good news is that as time passes, your credit scores will gradually improve and have less impact on your credit scores.  If you just overlooked a bill and forgot to pay but otherwise had a great payment history with the creditor, try calling the creditor and see if they can delete the late payment.  If it was your only late payment, most creditors will remove or delete the late payment but if you had a history of late payments, it will be difficult to have it deleted.

How Lenders Qualify For Mortgage With Recent Late Payments

Mortgage lenders will view definitely not favorably view borrowers that has a late payment in the past 24 months.  Most mortgage lenders will not qualify for mortgage with recent late payments in the past 24 months.  There are a few mortgage lenders that will qualify for mortgage with recent late payments but the mortgage loan borrower will pay a price. Reserves or other compensating factors may be required.  The mortgage lender will scrutinize a borrower with a recent late payment more so than a borrower with no late payments.

Solutions On How To Qualify For Mortgage With Recent Late Payments?

I help many mortgage loan borrowers qualify for mortgage with recent late payments because I represent a national five star mortgage lender that has no overlays. As long as the borrower has one or two recent late payments, the Automated Underwriting System should render an approve/eligible per findings. However, if you have multiple late payments, then we might need to wait a few months and write a good detailed letter of explanation to explain the circumstances of the late payments.  For those who had multiple recent late payments, it might be difficult to qualify for a conventional loan and a FHA loan might be the only option.  If you want to qualify for a mortgage with recent late payments and you are a mortgage loan borrower, please contact me at 262-716-8151 or visit me at www.gustancho.com and I will be able to help you.  I represent dozens of wholesale residential mortgage lenders who specialize in helping borrowers qualify for a mortgage with 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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