Qualifying For Loan With Recent Late Payment On Mortgage

Home Loan With Bad Credit

Gustan Cho Associates

Whether you are a home buyer who is seeking a home purchase mortgage or are a homeowner seeking to refinance your home, recent late payment on mortgage is looked at. You can have prior bad credit due to extenuating circumstances and prior bankruptcy, foreclosure, short sale, deed in lieu of foreclosure, unpaid collection accounts, charge off accounts, and prior late payments on your credit report.  However, a recent late payment on mortgage  in the past 12 months is really frowned upon by mortgage lenders and multiple recent late payments may disqualify you for qualifying for a mortgage loan until you have had a history of 12 months of timely payments on all of your debt obligations.

Verification Of Rent

If your mortgage loan underwriter is requesting verification of rent as a condition to approve your mortgage loan, what they need for the verification of rent to be valid is 12 months of canceled checks.  The mortgage loan underwriter will review the 12 months of canceled checks you have provided and make sure that your rental payments have been paid on time.  Mortgage underwriters take timely rent payments extremely seriously because it is an indicator on whether or not you have a history of paying your housing payments on time.  Majority of mortgage lenders require 12 months timely rental payment history.  There are a few mortgage lenders that will allow a one time 30 day late payment in the past 12 months.  I do not know of any mortgage lenders who will qualify a renter who has more than a one time 30 day late payment.  If you had multiple 30 days late payment on your rental payments, you may need to wait until you have re-established a 12 month on time rental payment history.

Verification Of Mortgage: Recent Late Payment

If you are a homeowner and are looking to refinance your current home loan, mortgage lenders will require a verification of mortgage which is verifying with your current mortgage lender that you have made timely mortgage payments in the past 12 months.  Majority of mortgage lenders require that you show 12 months timely mortgage payments to your current mortgage lender, however, there are a few select mortgage lenders that will allow a one time late mortgage payment in the past 12 months as long as the late mortgage payment did not happen in the past 3 months.  You could have been late multiple times on your mortgage payment in the past but not in the past 12 months.  Verification of Mortgage is also known as VOM.

Can I Qualify For Home Purchase Mortgage If I Sold My Home With Recent Late Payment?

Many homeowners who sold their home have a hard time qualifying for a new home purchase mortgage loan because they did not have a timely mortgage payment history on the home that they sold.  Even though your home is sold and the mortgage balance is paid off, your new mortgage lender will review your credit report and see if you have been timely with your old mortgage payments in the past 12 months.  Even though your mortgage balance is paid off, you can encounter problems in qualifying for a new home purchase mortgage loan.  There is nothing you can do about this except to wait out the 12 months before you can qualify for a new home purchase mortgage loan.

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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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