How bad is one negative point on your credit report when applying for a home loan?

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Unfortunately we co-signed a loan with my brother in law for his car, and he missed a payment (31 days) and the finance company reported it on my husbands credit. How bad does this look to potential lenders (mortgage). We already have a house, but are looking to move within the next few years. Anyone out there with lending experience from the home mortgage industry that can add some insight?
Please no solicitors

  1. Reply
    January 30, 2011 at 9:15 am

    It wouldn’t have been significant before the crash. since the crash, every little thing is scrutinized. Chance are, you’ll be okay; only you won’t know until the process starts and gets reviewed.

  2. Reply
    January 30, 2011 at 9:27 am

    Don’t worry about it.

    While the late will show for 7-years only the last 24-months worth of payment history actually shows on your report so while they will know that the account was 1 x 30 days late they will not know when the late was made.

    The last 24-months of payment history is the most important.

    Just make sure your brother in law doe’s not mess up again and you should be fine.

  3. Reply
    January 30, 2011 at 10:11 am

    If that’s the only issue you should be fine.

    The only issue is your debt to income ratio. You have to take into account the obligation of the car. That will hurt you more then the 31 days late.

  4. Reply
    January 30, 2011 at 11:02 am

    I agree with every one else if this is the only thing you have to worry about, your fine.

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