Does someone review your credit report when applying for a mortgage?
I was wondering if someone, like an actual person, reviews your credit report instead of it going through some sort of algorithm, because I have like several inquiries on my credit report, but they were all from me getting a new car and when I got my new car, they ran my credit with like several different banks, and I have late payments on some of my credit cards, but that was like almost 5 years ago and I have a good reason that I could explain to a person, rather than to an algorithm.
L2021-01-30T21:20:07Z
Of course there is. When applying for a mortgage or loan, this is a standard procedure and you are not allowed to be there to explain anything. They determine your mortgage payments based on your credit rating and your interest amount.
The final stage is called "underwriting" and an actual human being looks through all of the documentation such as your bank statements, pay stubs, and your full credit report (not just your score) and makes the final decision on whether or not to authorize the loan.
Its common for last minute questions to pop up during this phase, and as long as you have valid answers and proper documentation it should not stop you from getting a mortgage.
When you first meet with a mortgage agent be open and honest with them about your situation.
The inquires for the car loan shouldn't be an issue. This is common and the scoring algorithms actually only count this once. Its common to shop around or run credit with multiple banks when looking for a loan, so multiple inquires for the same type of loan within a short period of time will count the same as if you only had one.
The late card payments are probably old enough that they aren't going to be a deal breaker but again make sure you tell the mortgage agent about it upfront so you don't end up with unpleasant questions from the underwriter 2 days before you're supposed to close on a purchase.