I think I've ruined my credit score. Do you think there is a chance I'll get a mortgage?

[Anonymous]

Hello,

Sorry if this in not the right place to ask. I am now dying from anxiety because I think I effed up my credit score...

So I put an offer on the property which got accepted. I then got a mortgage but the seller took ages to sort out the documents and so my first mortgage offer ran out...

Now the seller finally sorted everything out and so I've applied for a second mortgage through a broker.

Problem is, when I was applying the first time there wasn't a single month when I haven't saved anything. Every month I've saved more than what I was applying for in a mortgage application... That was consistent for about 8 months.

But now... This December I was reckless enough to go on aca trip so I not only saved 0 £ but also spend 30£ more than I earned that month...

On top of that I invested in crypto this month but then again realised it was a bad idea and quickly transferred my funds back (crypto was about 400£).

Do you think my credit score is effed up now?

I'm so so anxious. I've already paid a fee for this house. If I failed the credit check I'm not sure what to do next...

I've got 0 debts apart from student finance but I barely pay anything per month. A bonus at work any neve had any loads /debts etc.

[Oliverlogan263]

Don't panic just yet! One month of not saving as much isn't necessarily going to ruin your credit score. A few things to consider:

- Credit scores are based on more than just one month - they look at your history over time. If the past 8 months were good, that still counts for a lot.

- Spending a bit more one month for a vacation isn't unreasonable. As long as you weren't wildly overspending, it probably won't cause major issues.

- The crypto investment was a relatively small amount and short-lived. Shouldn't impact things too negatively.

- No other debts is great. Student loans also aren't seen as big risk factors usually.

- Bonus income shows stability.

I'd say there's still a good chance you'll pass the credit check. Talk to your mortgage broker - they can advise if your score is still strong enough. And don't stress yet, you may be overthinking it. Focus on providing all the docs they need.

Lots of people have the odd month where savings dip a bit. As long as your overall financial picture shows responsibility, one month likely won't sink you. Take a deep breath! Fingers crossed it works out.

[sawno]

You asked this anonymous so I don't know where you are from. Creditscores work retarded in the US to where this probably helped you. But in the netherlands I think you'd also be fine considering your savings.

Because over here its based on the amount of times you were in debt and the amount of savings you have. If you never have been in debt its considered a great credit score. In the US my ex literally got a creditcard that automatically caused and paid off debt (without her having to pay rent) as she used it like a normal debit card just so she would be seen as a person who would constantly and regularly pay off her debts.

If you are from the US such a card may be worth getting in to. I forgot which one she used but looking at similar ones online I think it was https://extra.app/

[Anonymous]

You just need a higher down payment, and once you start making payments you'll build your credit score back up.

The problem is you'll be buying a house at the top of the market so you'll never be able to get out of it, and when the market crashes, the bank will be able to ask for more of a down payment to cover the lower equity in the house that's now worth a lot less.

[Asker]

Hey there.
Yep. I am putting a down payment of 18% now. Do you think that's manageable?

I'm so anxious they will look at the last 2 months and will say no... As I've already paid a small fee on this property.

[Opinion Owner]

A normal down payment is 20% so they will most likely want 25% or 30%.

They will look at the past 5 years, they won't care about the past 2 months, which can be explained away.

What kind of fee did you pay on the property? The only legal fee your could have paid is earnest money, which is contingent on having financing improved. If you don't get your mortgage, you get your earnest money back. Any other fee you might have paid is illegal.

[sawno]

Great analysis of why I am not able to get a house in the current market here in the netherlands. I have a reasonable amount of savings but its financial suicide.

[Opinion Owner]

@sawno Housing is unusually high there also?

[sawno]

Terraced houses (Where its an entire block of houses connected) can sell up to half a million dollars. They calculated it and single incomes have a 3% chance of buying a house. We have no houses left due to mass migration, but the politicians refuse to put a stop to mass migration. So now we are letting migrants in faster than we can build houses. That means houses will stay completely unaffordable for my generation, but the moment they decide to reverse that policy house prices would stabalize and I'd loose out on a ton of money if I bought one now.

[sawno]

By comparison if I wanted to buy a house in Ohio I could outright buy one without a morgage during moments the exchange rate is favorable.

[Opinion Owner]

@sawno yes if you buy after the crash it will take care of you the rest of your life

[sawno]

Basically what I am planning on, the problem is there kind of was a crash because rent has gone up to where its harder to pay for for different reasons and the economy went to hell here to (Its not just biden, its all countries with the energy transition policies). The result? Some people of my generation could now buy a house and the price stayed high rather than completely crashing.

[Opinion Owner]

@sawno there will be a housing crash when they crack down on immigration

[jamesgoldman]

No idea everyone I know well with a house or several or commercial properties were cash buyers

My friend in exotics rentals took a mortgage on his warehouse but that was interest only to purchase some cars the after 8 months he paid it off entirely

[slatyb]

Do you have late payments to creditors?