Can I buy a house with a mortgage if I have bad debts on my credit report? There might be a chance to do so!

When buying a house with a mortgage, the bank will definitely check our credit report. If there are too many bad credit records on the credit report, it is often difficult to successfully apply for a mortgage. Many people don't pay much attention to their credit report before buying a house. When they buy a house, they print out the credit report, only to find out that they have bad debts on their credit report. Can I get a mortgage to buy a house if I have bad debts on my credit report? Let’s find out together.

What will be the impact of having bad debts on your credit report? First of all, let’s first understand what bad debts are. Bad debts refer to accounts receivable that have been overdue and have not been recovered despite repeated collections by lending institutions. They have been in a sluggish state for a long time. Generally, they refer to those accounts receivable that have been repaid for more than 3 years. Unsettled accounts. Bad debts have a great impact on the credit report. They are serious overdue debts, and their negative impact is far greater than ordinary overdue debts. As long as the word bad debts appears in the credit report, it is basically difficult to handle related financial services at the bank, such as applying for credit cards, mortgages, etc. Car loan. If bad debts are not dealt with, they may remain on your credit report for the rest of your life. If there are bad debts on your credit report, you need to pay off all the debts. After settling the debts, you need to cancel the account. If you don't cancel the account, the record will not be cleared.

Can I buy a house with a mortgage if I have bad debts on my credit report? If there are bad debts on your credit report, you cannot get a mortgage to buy a house. If you have bad debts, you are a black account, which is a restricted area for credit reports. You cannot apply for a loan that requires a credit report. Therefore, before applying for a mortgage loan, you should deal with bad debts in advance and complain to the bank about non-malicious bad debts to minimize their negative impact. In addition, you can also submit other asset certificates or find a third party to guarantee the mortgage loan to improve your repayment ability and reduce the risk of bank lending. Bad debts on your credit report have a great negative impact on mortgage purchases. It is recommended that you print out your credit report in advance before buying a house to see if there are any bad debts and deal with them in advance. Do not let the bad debts remain visible until the bank approves them. Will an overdue credit card affect the mortgage loan?

If the late repayment of the credit card has already caused bad credit problems, it will have an impact on the loan to buy a house. If the overdue credit card is serious and causes credit problems, it will not meet the loan conditions.

According to Article 5 of the "Personal Housing Loan Management Measures", the borrower must meet the following conditions at the same time:

1. Have a permanent urban residence or valid residence status;

2. Have a stable career and income, good credit, and the ability to repay the principal and interest of the loan;

3. Have a contract or agreement to purchase a house;

4. No housing subsidy A down payment of no less than RMB 30 of the total price of the house purchased shall be used as a down payment; if there is a housing subsidy, RMB 30 shall be paid by the individual as a down payment;

5. Have assets recognized by the lender As a mortgage or pledge, or an entity or individual with sufficient repayment capacity as a guarantor;

6. Other conditions stipulated by the lender.

Extended information:

Article 35 of the "Personal Housing Loan Management Measures" If the borrower has any of the following circumstances, the lender shall apply in accordance with the relevant provisions of the "General Rules for Loans" of the People's Bank of China The regulations stipulate that the borrower shall be held liable for breach of contract:

1. The borrower fails to repay the principal and interest of the loan on time; 2. The borrower provides false documents or information, which has caused or may cause loan losses.

3. Without the consent of the lender, the borrower will demolish, sell, transfer, donate or repeatedly mortgage the property or rights with mortgage or pledge rights;

4 . The borrower changes the purpose of the loan without authorization and misappropriates the loan;

5. The borrower refuses or obstructs the lender from supervising and inspecting the use of the loan;

6. The borrower and other parties A legal person or economic organization signs a contract or agreement that damages the rights and interests of the lender;

7. The guarantor violates the guarantee contract or loses the ability to bear joint liability, the collateral is damaged due to accident and is insufficient to repay the principal and interest of the loan, and the pledge is obvious The reduction affects the lender's realization of the pledge, but the borrower fails to implement new guarantees or new mortgages (pledges) as required.

How long does it take to pay off bad debts before getting a mortgage

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Some people apply for more credit cards and may forget to repay them over time. Unpaid debts become bad debts. Bad debts are serious overdue records, which will affect everyone's application for a mortgage. So how long will it take after we pay off the bad debts before we can apply for a mortgage? Next, the editor will briefly introduce it to you.

1. If there are bad debts in the personal credit report, it will be difficult to apply for a housing loan. Even if we pay off the bad debt, it will still be recorded in the credit report. Bad debt is a serious overdue phenomenon, and the bank may directly reject the applicant's loan. The bad credit record in the credit report will be automatically eliminated by the central bank 5 years after the debt is paid off; you can apply for a mortgage again 5 years after the bad debt is paid off.

2. There are bad credit records in the personal credit report, some of which can be eliminated through negotiation with the bank; for example, non-malicious debts such as forgetting to pay annual fees, late payment fees, or bank errors. If the overdue payment is caused by overdue payment, we can repay the overdue payment and negotiate with the bank to eliminate the bad overdue record. If the overdue payment is caused by credit misappropriation, we can file an objection application with the People's Bank of China. Generally, the bad overdue payment will be eliminated within 15 working days.

3. Personal credit report is very important. If the personal credit report is good, we will go smoothly when applying for loans and credit cards. The bank will not only pass the loan application quickly, but may even approve the loan application in terms of quota and credit card. Provide preferential rates in terms of interest rates; and many companies have launched personal credit services, such as installment shopping, etc. If your personal credit report is not good, you will not be able to enjoy these services.

The editor summarizes: Regarding how long it takes to pay off bad debts before getting a mortgage, the editor will briefly introduce it to you here. I hope that after reading this article, everyone can understand this. Everyone should keep good personal credit records in their daily lives to avoid bad credit records from affecting our daily lives in the future.

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