Your credit score is one of the biggest factors in determining your qualification and interest rate when applying for a home loan. Missing a credit card payment is not the end of the world and it will not automatically prevent you from being able to qualify for the purchase of a home, but the event will negatively impact your credit score.
Best Case Scenario:
If you are lucky, the lender will not report the late to the three credit bureaus. An account is not late until the account is over 30 days late and a payment made within the 30 days may have some late penalties, but will not negatively impact on your credit. If the payment is has not been made in 30 days, your lender is within their rights to report the late to the three credit bureaus. Just because you’re late however, does not mean that they will report it. The larger creditors have analytical models that analyze payment history of their customers and sometimes if you have been making on-time payments for a long time, it is possible that they might not report the late.
Worse Case Scenario:
If your lender does report a late payment to the credit bureaus it will take anywhere between 60-90 days to impact your credit, and when it does it can cause up to a 110 point decrease on your credit score depending on your total payment history. Unfortunately, the higher your score before the late, the more likely that your score will suffer a greater loss. Over time your score will improve with positive payment history. Search this blog for tips on how to remove derogatory items from your credit report without paying a credit repair company.
When looking for a house, we had couple recommendations for a lender. After talking with all the lenders, many were difficult to work with and couldn’t get it done as quickly as we needed. I was referred to Chad Baker’s team and I am glad we did. Not only did they get the things done quickly for us, they were very easily to get ahold of. It wasn’t rare to get a response within 15 minutes whenever an email was sent. I could not express how friendly and outgoing this team is. And on top of that, they came back with the best offer for us amongst all the other brokers. I am glad I worked with these guys. If you are looking for a lender…MAKE SURE TO CALL CHAD BAKER AND TEAM!!! Thanks Chad for all your hard work. Next time we buy another house I am calling you first!
“Chad and his team got me funded in less than 30 days, completing a deal that another broker fumbled around with for almost 90 days. Effective, efficient and excellent communication skills. Outstanding professionalism.”
Incredible Turnaround and Stellar Customer Service. Chad and his team helped us get into our first home here in San Diego. When we first started the process we were skeptical it would even be worth applying. But Chad and his team walked us through the whole lending process with integrity and know how that surpassed our expectations. After helping us to pull together our pre-qualification, he and his team stayed at the ready. Before we even walked up to a home we were seriously interested in he had the data we needed over to us and our realtor. After finding the home we wanted to place a bid on, we were able to place a bid with a matter of a few hours. Then, after having our offer accepted, he had our loan package completed and the keys in our hands in under a month — I am pretty sure it was less than. Like I said, incredibly fast and professional turnaround. if you are looking for a motivated lender who can walk you though every detail and have your back every step of the way, Chad and his team at HomePoint Financial is your best decision. Recommend them highly!”