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didnt qualify to refinance

Last year, I had some financial problems, and I was close to a short sale on my condo. In the end, I was able to keep my condo, and get current on my payments. Due to the late payments I  do not qualify to refiance. Would getting a cosigner help me qualify to refinance?
  • January 11 2014 - US
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Answers (5)

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Thank you gentlemen. ;)
  • January 12 2014
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How late were you on your payments?  Does not make sense that your credit scores are in the high 700's if you were late and/or have not made a payment since October.  If you would like to take this outside this forum and contact me through my profile, I would be happy to discuss further and offer guideance.
  • January 12 2014
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It depends... on the lender. 

Although all lenders must abide by the same General Mortgage Loan Guidelines, some banks have additional self-imposed "overlays" that restrict their ability to lend even more than these guidelines.  They do this because of the secondary market that buys these loans after they are funded.  So, you really won't know until you check it out. 

My suggestion is to start at the Bank or Credit Union where you normally do your banking business.  They should be able to answer some general questions about their ability to lend to you without pulling your credit. 

If they have to pull your credit, don't sweat it since credit reporting bureaus do not penalize you for multiple credit pulls ("hard" credit inquiries) as long as they are in the same credit category (e.g. mortgage loans.)  They consider consumer shopping for lenders to be normal.  You might take a 3-6 point hit to your credit score.

However, when you have multiple "hard" inquiries for different credit categories (e.g. credit cards, installment loans, car loans, mortgage loans, etc.) watch out.  Your score will be more dramatically affected. 

If your bank/credit union is not able to help you, consider going with smaller lending institutions that do not impose the "overlays" mentioned above.  Ask your friends, family, associates and Realtors. Search online.  Keep looking until you find what you are looking for.  There is a good chance that there is a lending institution in your area that has what you are looking for at an acceptable interest rate.

You will be surprised at the variation in responses that you get.  However, if your region is anything like mine, there is definitely a lending institution that can help you out as long as you have the ability to repay the loan (income) within the acceptable debt-to-income (DTI) ratio.

If you were able to "cure" the short-sale before it came to actually down to it, you should be fine if your credit score has recovered.  Also keep in mind, that in todays lending "climate", your credit score will definitely affect the interest rate you end up with, even on a Government Loan (FHA or VA).  Lending institutions see a lower credit score as an indication of higher risk to them, that they will ask you to cover with a higher interest rate.

Good luck.

  • January 12 2014
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My last payment was in october and my credit score is in the high 700'S. Thank you for your help.
  • January 12 2014
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Your credit is still going to drive the rating on the loan.  A cosigner would only help if you needed more income.  When was your last late payment.  How late were you.  What is your credit score
  • January 11 2014
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