topic Should I write a LOE in Mortgage Loans

Should I write a LOE

Anonymous — Thu, 20 Dec 2018 19:04:08 GMT

Hi all. I plan to buy a house in the spring. In 2015, I had 7 late payments on my mortgage due to an honest, albeit costly error (sold the house same year). I changed the date of my autopay by a few days to account for a new job's payroll date. I had accounted for plenty of time to avoid late charges. Unfortunately, the date I selected was sooner than the standard 5 day window my bank requires. The system, instead of erroring out, simply chose the date I selected in the following month. Shame on me, but with autopay everything I don't pay much attention to due dates. Go forward 7 months, I realized what had happened and immediately made double payments to get current.

My mortgage scores are sitting at 686, 734, 722. Questions: Will I be required to write LOE with these scores? Will it matter w/ regards to my approval or rate? Additional thoughts?

Thanks in advance for your opinions and comments.

Re: Should I write a LOE

CreditInspired — Thu, 20 Dec 2018 20:32:10 GMT

You’ll be okay because your late payments will be 5 years old. LOs like no late payments in previous 12-24 mos

Re: Should I write a LOE

tlittlejohn — Fri, 21 Dec 2018 00:54:18 GMT

Good Evening,

I have late payments reported in 2015 for my car loan and during my first set of conditions I was not asked to write a LOE for the late payments.

Re: Should I write a LOE

homeloanexpert — Fri, 21 Dec 2018 02:55:35 GMT

Don't sweat the previous mortgage late payments, they are several years old. To answer your question, when you apply for a home loan, you will be required to explain any derogatory credit, inquiries, variation of addresses, and any AKA's that appear on your report. Your LO will sent you a Default Form Letter which is taken directly from the credit company they use. It easy and painless. Your LO will walk you through the process.

Best wishes!