We have been preapproved for a home loan but were late on a credit card payment…is this bad?

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My husband and I are preapproved for a home loan scheduled to close in about 45 days. We are currently late on a credit card payment because we put down “earnest” money for our new home. We are going to make a payment to get current on all of our credit cards this week. Our loan officer said she will wait until we are current before submitting our final info to the mortgage lender. Are we likely to be denied the loan as a result of late credit card payments so close to closing?

I found a condo in NJ and I am looking for a mortgage loan but I have really bad credit (400s-500s). Any lenders in NJ that anyone has had experience with getting people with bad credit a home loan? I have a good job and i am working on my credit.
actually i just found out my credit is 580… will any lenders willing to work with me in NJ? i called country wide and they couldn’t help me.

11 Comments
  1. Reply
    karenhar
    February 14, 2011 at 3:48 pm

    Probably not. It may not even show on your credit report yet.

  2. Reply
    christy b
    February 14, 2011 at 4:13 pm

    late payments can lower your credit rating. Your credit rating is how lenders decide if you can get a loan. To me it looks like you are not pre approved if it has not been sent to the mortgage lender.

  3. Reply
    msknowitall
    February 14, 2011 at 4:25 pm

    You should be OK, one late payment will not make your credit plummet. Usually if you contact the credit card company directly and explain the situation and make the payment right away, they will report it as on time. Also, these things don’t always show up on your report immediately. It shouldn’t be on there for at least 30 days.
    Good Luck.

  4. Reply
    Maria R
    February 14, 2011 at 5:00 pm

    Well I had the same problem and I had to pay off those credit cards before our closing. I would just pay them off, if not they will get included in your home loan…

  5. Reply
    sarge927
    February 14, 2011 at 5:43 pm

    As long as you don’t have any other history of late payments on credit cards or loans you shouldn’t have a problem. One late payment isn’t enough to raise a red flag. If it shows up on your report they may ask you about it, at which point you simply explain what happened and that’ll be the end of it.

  6. Reply
    USC MissingLink
    February 14, 2011 at 6:13 pm

    Many credit card companies will only report a late payment if the account gets more than 60 or 90 days past due. Missing a payment may not kill your credit. I would contact your credit card company and ask them not the report the late payment; you may find that they are happy to oblidge. Remember, they are making a lot of money on the late payment, and they don’t have incentive to trash your credit.

  7. Reply
    Joseph H
    February 14, 2011 at 6:38 pm

    It is standard procedure for final info to be on hold until all debts are current and it could affect you credit score if all ( and you did not mention how many ) credit cards are now past due, which would affect the interest rate you obtain on the mortgage.

  8. Reply
    cvcastrejon
    February 14, 2011 at 7:09 pm

    call your credit card and see if tthe credit card company even sent the report, they normally wait until you are exactly two months late. If its your first time this year they will forgive you for it. Don’t mess up your credit even after the ecrow goes through, you never know when you have to refinance.

  9. Reply
    gabriel jones
    February 14, 2011 at 7:10 pm

    Bad credit is one of the worst problems to have… however there exists a solution.

    I will hereby talk from my personal experience.

    I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
    if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,

    a good place to start in my humble opinion is a straight to the point ebook with question and answer I found :

    http://umgarticles.atspace.com/debt-consolidation.htm

    if it helps kindly remember me in your voting!.. cheers!

  10. Reply
    Fort Sill Army Wife
    February 14, 2011 at 7:19 pm

    That is an exteremly poor credit score, even with FHA loan you need a score of 620… work on your credit.

  11. Reply
    jason h
    February 14, 2011 at 8:09 pm

    freecreditreport.sinfree.net – try this service to boost you credit score before getting loan. After credit repair you can get the loan with minimal interest rate.

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