Posted: Mon Jan 16, 2006 2:16 am Post subject: RE:
Hi,
Having credit problems in the past does not mean that you cannot obtain a home loan. But because of your credit problems a lender will consider you a risky borrower and therefore will charge you higher interest rates and will also expect you to pay a higher down payment. The worse your credit score and more you can expect your interest rate and down payment to rise.
One more problem you can come across is that there are not many lenders who are ready to lend to borrowers having low credit score so you will have to contact several lenders before you find lender who is willing to lend you.
Thanks,
Jerry
Drik Guest
Posted: Mon Jan 16, 2006 4:49 am Post subject:
I have been late a couple of times on my bills last year does this mean that I will have to settle for a higher interest rate on my mortgage.
Posted: Mon Jan 16, 2006 5:30 am Post subject: RE:
Hi Drik,
Welcome to MortgageFit Forums.
It is not necessary that you will have to settle for a higher interest rate. If you were not late on your payment for more than 30 days then you have a very good chance of getting a mortgage at a competitive interest rate. It varies from one lender to another.
Most lenders will excuse minor late payments if you can provide a reasonable excuse explaining them why you were not able to pay your bills on time like illness, job transition etc. But if you were late for more than 60 days and cannot explain the reason for the late payment to your lender then you will have to settle for higher interest rates.
jerry
