Car/Mortgage Lenders

[musikklvr]

I'm thinking about going to the lender that financed my car to ask for a mortgage loan. My car was paid off last year. I had a couple of late payments with them but I paid everything off.

Question: Will a lender be more willing to give a mortgage since you paid off a previous loan with them? Even if you don't have great credit and can explain some situations?

I tried other lenders last year and got denied. My scores are higher now and I thought I would fare better going to the lender I had a loan with before.

Any thoughts?

Thanks a lot!

[ShanetheMortgageMan]

The answer will depend on what they do with their loans. 

If they sell them off, then nope, your payment history with that lender won't affect their decision anymore than if that same payment history was with another creditor... they would be bound by the constraints & guideilnes of the end investor and the "master guidelines" for the particular loan program you are qualifying for.  If they portfolio them, meaning they retain them and do not sell them on the secondary market, then your personal credit history with them would speak volumes as it's usually a much more "common sense" underwriting approach in that situation.