Rebuilding Your Credit

[SarahElisabeth]

Hello, I'm new to the forums and have a question. My husband and I are in the process of applying for an FHA home loan. He has had credit issues in the past, but has been working hard at rebuilding his credit over the past year. He had a 30 day late payment on his auto loan in August of this year (he thought he paid it but hadn't), but his credit was pulled today and it's not been reported. How likely is it that they would report the late payment now? Crossing my fingers.... I'm really afraid that if they do report it, his credit will drop too much and we wouldn't be able to get the loan at all. His middle score is 671.

[rckstrscott]

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SarahElisabeth wrote:

Hello, I'm new to the forums and have a question. My husband and I are in the process of applying for an FHA home loan. He has had credit issues in the past, but has been working hard at rebuilding his credit over the past year. He had a 30 day late payment on his auto loan in August of this year (he thought he paid it but hadn't), but his credit was pulled today and it's not been reported. How likely is it that they would report the late payment now? Crossing my fingers.... I'm really afraid that if they do report it, his credit will drop too much and we wouldn't be able to get the loan at all. His middle score is 671.

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Ugh.. tough to say.. when was the last report? Does it show Octobters payment yet? Sometimes lates will show a month after the fact..

How late was he on the payment? 31 days? 40 days? 54 days? When did he finaly become current

-scott

[SarahElisabeth]

Hmmm, I'm not sure when they last reported. I need to ask our loan officer. He was 35 days late and has been current ever since. Do the banks usually report every month? When the credit was pulled initially on 9/24/12, they had reported in 8/12.... but the loan wouldn't have been late at that point.

[Shogun]

You will just have to watch the report and see if it posts.  If it does, see if you can GW them.

[SarahElisabeth]

Do they report on the same day each month? Or could it differ?

[rckstrscott]

Should be the same time every month..

When did the LO last pull your credit?

-scott

[Shogun]

They most often report around the same time, give or take a day.

[SarahElisabeth]

What I'm most afraid of is that we will get the mortgage committment with the current credit, and then if they re-pull the credit at the very end we would lose our real estate deposit (3.5% of purchase price and most of our savings)

[SarahElisabeth]

They pulled the credit today just for that trade line

[rckstrscott]

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SarahElisabeth wrote:

What I'm most afraid of is that we will get the mortgage committment with the current credit, and then if they re-pull the credit at the very end we would lose our real estate deposit (3.5% of purchase price and most of our savings)

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If your deal falls apart at the table due to a new credit thing, you won't lose your downpayment/earnest money.

You only lose that if you back out of the deal.

-scott