How do late payments affect me?
It will be important to explain you payment history if you have been late in the past. An letter of explanation will most likely be required by the lender of any new line of credit.
How late is your payment? If you are less than 30 days late the incident probably won`t show up on your credit report. You will still have to pay any late fees, If you must be a few days late on your payment its very important to contact your lender to let them know that the payment will be delayed and when exactly it will be mailed.
A lot of times, many mortgage companies will work with you if you are having payment problems. Please contact them if money is getting tight so they can come up with a situation that fits your situation.
It is very important to make sure that you make all of your mortgage payments on time. Not only do late payments lower your credit score and cost you money in late fees, they can affect your ability to buy a new home or refinance your current one. Lenders will look at your mortgage or rental history over a period of 12 to 24 months when determining your interest rate and what LTV you are eligible for.
Late payments, as far as your credit report are concerned, are at least 30 days late. A late payment for your mortgage will hurt your credit score more than a late payment for a car loan or credit card.