Almost all mortgages, home equity loans, refinance loans, loan modification companies, and home equity line of credits have a specific date for the monthly payments. Normally, the due date is the first day of the month with a late fee charged after the 15th day of the month.
The mortgage is considered late after the due date, but one is given a grace period which is the time between the due date to the time the late charge is assessed.
Late Mortgage payment and your credit
Mortgage lenders usually report late payments to credit 30 days past the due date. Late payments do a lot of damage to your credit profile and may hinder you from qualifying for refinancing or getting another home loan. It is advisable that you pay your mortgage on the due date or days close to the due date to evade credit issues and delays in payment processing.
Impact of late payments on mortgage applications
The question of whether or not one will get a mortgage or loan modification help with late payments on their credit depends on the lender. Unfortunately most lenders decline applicants with missed payments on their credit files. However, some will go ahead and grant you the mortgage even with one, two, or multiple payments.
The number of late payments
The number of missed or late payments also depends on the specific lender. While there are some that will overlook one, others will tolerate none of it.
When you apply for mortgage, the lender assesses your credit card to see how you manage your payments. If there is late payment, the lender will draw judgments of your likelihood of keeping up with payments.
It is therefore good that you avoid late payment at all cost. Keep track of the due dates as agreed and ensure month variances do not affect your payments. As said earlier, some lenders may not take into account your late payments but beware that they may end up charging you a higher interest for the same.