I have a client who may not have a merry holiday season after all. He was scheduled to close on his new house on December 30. The loan process was moving smoothly despite the fact that it's been interrupted with holidays for the past month.
Yesterday, he got a hard dose of reality. He inadvertently missed a $10 minimum payment due on a store credit card in November. It got reported to the credit bureaus, and his score dropped by 60 points! As if that weren't enough, that drop was enough to disqualify him from the mortgage program he was in.
Instead of being concerned about whether he would close in the morning or the afternoon, now he's faced with fighting to get his deposit back, and trying to repair his credit and determine when he can buy another house.
The missed payment was nothing more than oversight. The creditor doesn't care either way. The investors guidelines are very clear and completely unbending. He will not buy his new house on December 30. I only hope we can find some way to salvage this for the spring.
Please make sure you pay every bill, even the smallest ones on time. The impact can be devastating.
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