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Obtaining mortgage with lates??

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Anonymous
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Obtaining mortgage with lates??

We have been working hard to repair our credit. Seems like the last few years have been one thing after another. In 2010 we filed bankruptcy due to the recession nearly sinking us. Then a few years ago we had some car repair issues. Like rebuilding our truck motor, bought a car that unknowing to us had a bad transmission and then our trucks transmission went out. I fell behind on a few credit cards. 2 on my credit and one on my wife's. A couple 120 day Lates and one charge off. It's since been paid and the one with 120 day Lates has been paid to date and the creditor has been raising my limits steadily for the last year. All of our bads have been paid and my credit score has gone up to the 650 range from low 500s. We are wanting to buy a house and will have around 10% down. We also bought a new vehicle in March and my wife got a few store cards. So there's quite a few inquiries. Is this a lost cause or worth going after in the next few months?
Message 1 of 9
8 REPLIES 8
Anonymous
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Re: Obtaining mortgage with lates??

Not sure if this matters but income is $95,000 yr. we will be paying down or off all credit cards and paying off our truck by then.
Message 2 of 9
Anonymous
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Re: Obtaining mortgage with lates??

It's hard to say without more info about your credit file but just speaking on the lates as long as they are all over 12 months old you should be fine you just might need to provide some LOE's about them and I Definately wouldn't worry about the inquiries they won't be a problem but I'm sure you'll have to provide LOE's about inquiries from the last 3-6 months but I think it would be worth talking to a broker or LO.Good luck
Message 3 of 9
Anonymous
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Re: Obtaining mortgage with lates??

My husband and I recently closed on a condo after rebuilding our credit for a year.  We each had some 30 day lates from Jan of 15, but didn't have to provide LOE's because they were over a year old.  We also had 3-6 month old inquiries and that wasn't a problem.  We had to put more money down than we wanted with getting approved, but it was all worth it.  Our middle scores were about 650.  I would say you can atleast go talk to a motgage broker and see what they can do.  The process can be discouraging, but the reward at the end is great!

 

Good luck!

Message 4 of 9
BrianB_The_Loan_Professor
Valued Contributor

Re: Obtaining mortgage with lates??

Welcome to the forum - you didnt say how long ago this was but if it has been a while you will probably be ok

The system doesnt care for lates after a BK but it will still approve a file if the rest is solid

You wont know until you apply and someone runs your file through automated underwriting - that should tell you if you are ok or not

Hope this helps

B

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Brian B The Loan Professor
Mortgage Banker - offering FHA, VA, USDA , and Conventional mortgages in all 50 states -

If I do not respond to a follow up question please feel free to contact me directly
Message 5 of 9
StartingOver10
Moderator Emerita

Re: Obtaining mortgage with lates??


@BrianB_The_Loan_Professor wrote:

Welcome to the forum - you didnt say how long ago this was but if it has been a while you will probably be ok

The system doesnt care for lates after a BK but it will still approve a file if the rest is solid

You wont know until you apply and someone runs your file through automated underwriting - that should tell you if you are ok or not

Hope this helps

B


^^^this is so true.  Let me restate it a little bit:  the system doesn't like lates after a Bk.  You will probably have to provide letters of explanation at a minimum. The best way to overcome the late pays after Bk is to have all other items for the mortgage very strong.  This includes (some ideas here): larger downpayment, more in savings, lower DTI ratios and other factors. You need to show the late pays after Bk were a fluke and not a habit. 

Message 6 of 9
Anonymous
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Re: Obtaining mortgage with lates??

For the most part our accounts are in great standing. We've had 4 auto loans- never late. One we got right after the bk, it was refied so it's no longer active. A few credit cards with zero lates. We have a little work to do still. Mostly just paying off our oldest auto loan and paying off credit cards. We plan on applying in November and I want to be fully ready. The most recent late will be 18 months old by then. We've worked hard to bring up our scores as much as we have and I have this service and forum to thank for that.
Message 7 of 9
Anonymous
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Re: Obtaining mortgage with lates??

Speaking for my experience, I can tell you the following:

 

I recently closed on a home purhase, on June 6th. I have numerous lates on my file, mostly due to student loans that, longer story short, should have been in deferrment, but weren't. So they went up to almost 180 days late. This was in 2013 and 2014. I also have 1 medical collection for about $1000 from 2013, and a charge off that went to collections in 2011. There were two other random lates on a Capital One credit card in 2013.

 

Otherwise, everything has since been paid as agreed for past 12 months at least (student loans have long been cleared up and current).

 

I did have to provide explanations for each of them. As well as explanations for a few recent INQs (which were just other mortgage appllications).

 

I got my mortgage through NFCU (Navy Federal if you're not familiar).

 

Middle scores in mid 600s, per their inquiry-though to be honest, I'm a bit disappointed that the scores didn't match what myFICO said my mortgage scores were/are. myFICO shows my scores to be much higher than they, and other lenders, said they were.

Message 8 of 9
Anonymous
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Re: Obtaining mortgage with lates??

@ Mandifer531, what % did you have to put down with your 650 credit score? 

Message 9 of 9
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