Credit Score and Mortgage Loans?
Post date: June 3rd, 2011I have a had a really bad year and gotten
behind on house pymts. Mortgage company
has let me catch up and I am on track now.
I would like to sell my home and get something
less expensive. I was wondering how long I
would have to be on time with payments to raise
my score enough to get a new loan? Ar we talking
months or years? I have a college degree and make
a good income and have been at same job a long
time if that matters to the loan. I just really need to
get out of this neighborhood. Thanks
- Tags: college degree, job, long time, mortgage company, neighborhood, score
June 3rd, 2011 at 5:03 pm
Even with a not so good credit score, you could still get a loan. Your interest rate will increase with a bad score. As long as you are up to date on payments and have all previous debts paid, you should have no problem. Go to Lendingtree.com and get a quote…..that’s where banks compete to get you the lowest rate.
Also, if you have any equity in your home that would help.
June 3rd, 2011 at 5:03 pm
Wait 6 months. That way you’ll improve your score and the house you want to buy will be cheaper. The market has not hit bottom yet. Be patient.
June 3rd, 2011 at 5:03 pm
If you are caught up again, that’s good. If you just had late payments, you should be able to get a house or refi in about 12 months. You can always do it sooner, but you’ll pay a higher interest rate. Often, the lenders will require 12 months without any late payments in order to get the better rate. Just keep making your payments and you’ll improve your scores soon enough. If you end up losing your house to foreclosure, you will have to wait at least 5-7 years before Fannie Mae will approve you. And it’s on your record for 10 years. Don’t ever let that happen! Sell it if you need to and just rent for awhile.
June 3rd, 2011 at 5:03 pm
three to six months
June 3rd, 2011 at 5:03 pm
talk to your mortgage company to see if they will remove the late payments off your record. If you have had a long relationship with them, they might do that. Explain your situation clearly to them. Tell them you are caught up. Late payments dont affect your score much after 24 months.