Trying to judge the impact that late credit card payments may have on home loan approval. Anyone have experience with this?
Early 40’s US National, PR holder, married, 17 years in Japan. Income in Japan is low 8-figures at a large, foreign, corporation. Wife is Japanese, housewife so no income. Own a vehicle and land but no home or car loans. Local builder has done all the legwork to confirm everything is in order as far as my paperwork for my land, building permission requirements (lack of), etc. and they’re working on a full quotation for some plans we’ve drawn up together. Probably looking at 30-35milion.
Obviously want the loan in my name for tax savings. My concern is how a late payment on my credit cards may affect loan approval. Several months ago I had my wallet and phone stolen and I was unable to withdraw from my payment account local shinyokinko and deposit to my main MUFG account where the cards autopay was set up. I filed a police report but not really sure if the credit reporting agencies will remove late payments, regardless of justification. (working on getting a CIC report so I can see what’s there to begin with) Any advice or guidance would be greatly appreciated.
by BananaTacoZ
3 comments
It can indeed have an effect, but it depends on the bank and the overall conditions of the loan.
I would guess that a recent missed payment – from the last few months – would be a big problem when applying for a home loan.
It depends how late though. A late payment resolved within a few weeks might not go on your credit report.
Get a report from all the credit bureaux and if there is something there I would try explaining, showing the police report to the card companies to see if they will remove the note.
It’s hard to say.
I’ve missed atleast 5 payments on my rakuten card over the years (not enough cash in account usually), got the combini pay slip, went and paid and moved on. Got a house loan.
I would imagine the more recent, and an indication of months of delinquency would have more effect than a missed payment.