Credit Reports Decoded: What Lenders See When You Apply for a Mortgage

Credit Reports Decoded: What Lenders See When You Apply for a Mortgage

Payment history isn't just part of your credit score - it's the foundation. Let me explain why lenders obsess over this number and how to clean up past mistakes.

Why On-Time Payments Matter Most

The Lender Perspective:

  • 1 late payment = 40-100 point score drop

  • 90+ days late = automatic mortgage denial at most banks

  • Pattern of lateness = higher interest rates

The Fixes That Actually Work:

  1. Goodwill letters to creditors (works for older lates)

  2. Rapid rescore through mortgage lenders (for recent lates)

  3. Authorized user status on pristine accounts

The 7-Year Rule (And When It Doesn't Apply)

  • Most negative items fall off after 7 years

  • Exceptions:

    • Bankruptcies (10 years)

    • Federal student loans (never fall off)

    • Unpaid tax liens (indefinite)

Watch Me Dispute a Late Payment

See the exact process for challenging errors:

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