Underwriting process

[shannonrobbie]

I am a little stressed out and hoping someone knows the answer to my question.  I am in the process of trying to buy another house and the underwriter has asked for a copy of my current mortgage statement along with the the tax and insurance info.  Although my current mortgage payment has never been more than 30 days late and have never been reported as late to the credit bureau... I have paid it at the end of the month for the past 6 month which causes late fees to be applied (which I pay each time).  So on my statement it shows the pay fee's and a past due amount (even though it's not more than 30 days past due).

How will this affect things?  Will it be a red flag to the underwriter... Or will it be OK since it's never been reported as late?

Thanks

Shannon

[Anonymous]

The underwriter will question the late fees -- trust me.  They question EVERYTHING, especially if you are looking to purchase another property and also keep the other mortgage.  Even though we were selling our condo to buy our home (and the condo was under contract, closing any day) the lender on our home still checked out EVERYTHING with our condo mortgage.  One thing I learned from going through buying a home versus our first home four years ago, is that the UW leaves NOTHING unturned.  Your credit score is just a small piece of the puzzle.  We just closed on our new home last week, and it will be a LONG time before Id be ready to buy again!

[shannonrobbie]

Thanks for the reply.  After looking at how I posted my question I realized I probably should have added all the info. I just asked the way I thought we be easiest to ask..but all the info might be helpful.

The whole story is that my parents co-signed for my house.   And they currently also have the house they live in, 2 rental properties and then are trying to buy a second home for them.  And just the other day the underwriter asked for the mortgage statements and tax and insurance info for all there properties...which includes the one that cosigned for me on.   I am so worried that even though on our credit reports none of my payments have been late ..that the late payment fee's on my statement are going to the be reason that they don't get the new house that they want.

So my question is I know that they will see them... but will it be a reason to deny the new loan since the payment have never been more than 30 days late.?

[Anonymous]

Is the home you are trying to get now (the second home) really for your parents?  Im not a mortgage expert -- sounds like Id get the advice of a good broker. 

[shannonrobbie]

Yes.... It's really for them.   It's just a little house down the street from a lake that they want for the weekends and for summer.  Eventually they want to sell their main house and retire in the one they are trying to buy now.....which is why I am nervous that they may not get it because of me.  I had no idea that if I pay late fee's it could negatively impact them.

I spoke to my mortgage company a few time and they assured me that anytime I pay it after the 15th I am subject to late fee's..but that as long as it's paid in that same month it will not be reported as late.  I thought that was the most important part.   I have made sure it always gets paid in the same month.  So from a credit report perspective it's never late...but if you look at the mortgage statement it says 'late fee's due'.  I wasn't sure how a underwriter views that... if that would be a reason to deny.

My parents are fully aware how I pay it...but I am sure they will be disappointed if they don't get the house....and I will be really upset if it's my fault.

Just looking for someone with underwriting or mortgage experience to give me there thoughts.