Q&A: Mortgage advice for sticky situation?
Question by Not so looney afterall: Mortgage advice for sticky situation?
Two years ago we lived in California, where our mortgage was ASTRONOMICAL. We sold our house and paid off the loan. We moved to another state and bought our new house with cash. We are now in the process of getting a small mortgage to put toward home improvements. Yesterday, my husband’s credit score came back as 744- yea! But also the report showed two late payments on the old house before we sold it. The mortgage company wants us to contact the old mortgage company and find out why those payments were late. The truth is I know they were late because we had a temporary employment issue- but then we got back on track for several payments before we sold the house- and then paid off the loan anyway. I guess, despite the excellent credit rating, this might affect our interest rate on the new loan. Please advise how I should approach the old mortgage company so we can get the best rate on the new loan. Thanks!
Best answer:
Answer by heybulldog
If you saved and payed cash for the home why not save and pay cash for the improvements? You dont have a house payment every month so it should be easy to save up. I would try and stay out of debt. No debt is always best.
What do you think? Answer below!
2 Comments
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Short Term Cash Advice
With a 744, you shouldn’t get a bump in the interest rate, even if there was a late pay. You don’t need to contact your prior lender. You need to shop for another new lender. The only reason for a higher rate should be going no doc or stated income, stated asset, both of which you should be eligible for, considering your credit score.
Without going to more than two more places to keep your credit from being pulled multiple times, shop for a different lender. Feel free to stop by our website if you’d like at http://www.achievablemortgages.com. We may not be up in your particular state, but one of our Loan Officers can certainly tell you whom to shop it with.
The easiest way to do this would be just to call a couple lenders direct, such as a Countrywide, WAMU, Wachovia, or Chase. All of these companies will give you a quote within minutes over the phone and won’t be worried about a couple late pays that were over two years ago. It’s when they are within one year that they are really worried about.
I hope this helps. Good luck.
Level with the new lender. Explain why the payments were late and explain that that situation has now righted itself. Everyone goes through a couple of tough times and you made things right in the end. Your credit score is good and this shouldn’t affect anything. Good luck.