borrowing with a default

[jacobsmum04]

Hi,

just a quick question. my husband has a paid default on his credit history that will "drop off" in May 2008. We want to buy our first home, and wanted to know how much of an impact this would have on our ability to borrow. Any thoughts?

[andie_pandie]

Hi Jacobsmum04

Thank you for your post. This is a common question asked and a lot of people worry unnecessarily about some defaults.

It really depends on what sort of default it is, ie: amount of default, whom is the default with, the reasons behind why it occurred, and whether or not it is paid.

One thing I always tell my clients is to always pay there bills on time particularly their credit bills, ie: credit cards, personal loans and home loans etc. Sometimes there can be unexpected defaults from people moving about and not receiving there bills, or disputes and then they do not pay them at all because of a dispute.

I have seen cases where people have ended up on the wrong type of loans from either them determining that they have to automatically go to a non conforming lending institution or a broker putting them with this type of institution without seeing whether it would fit with a standard conforming Bank.

If you would like to PM me the status of the default, who it was with and the amount I would be able to let you know whether it is likely to cause any problems for you when you do apply for a home loan.

I hope this has been of some assistance for you.

Regards Andrea