Posted on: 27th Dec, 2011 12:03 am
Hello… We will be closing our mortgage in 15 days time. Now they have re-checked my husband's credit and he has a 30 day past due on his credit report. It is the first one he has in the last 4 years. Will this hurt our chances of getting the house?
If your husband has paid off the past due debt as mentioned in his credit report, then I don't think he will face any issues in getting the loan. However, if he hasn't paid off the debt, then there are high chances that the lender will ask him to pay off the debt.
I don't think they'll seek payoff of the debt, but they'd surely want to know that the delinquent status of the account had been cleared up, and they'll want a very solid explanation of the circumstances surrounding that late payment - why did it happen, how did it happen, will it happen again, etc.
Being honest is, of course, the best policy. If he just plain overlooked it, say that. If it was another problem, state the problem.
Most lenders can forgive that sort of thing as long as the bulk of your loan file is solid.
Being honest is, of course, the best policy. If he just plain overlooked it, say that. If it was another problem, state the problem.
Most lenders can forgive that sort of thing as long as the bulk of your loan file is solid.
If there is a recent late payment and prior to that there were no late payments, the credit score drops maybe 60 to 100 points and that could affect the mortgage interest rate and/or if a loan is still possible.
On the other hand, if the lender just got a credit report via a "soft pull" to see if there were any new loans just before closing, that will not affect the credit score, however, the Lender will have to resolve the past due issue.
On the other hand, if the lender just got a credit report via a "soft pull" to see if there were any new loans just before closing, that will not affect the credit score, however, the Lender will have to resolve the past due issue.
