Will having a default in 2004 stop me getting a mortgage?

Question

The default was settled end of 2004 and my credit record is fine except for this. Applied for and was accepted for a credit card recently but worried the default might stop me getting a mortgage especially as I am a first time buyer and only have a 5% deposit. Any thoughts?

Answer 1

First off you should only chk your credit once a year and that should be thru  www.annualcredit.com It is backed by the Bureaus and Attoney General regulates what is being done on the sites.  Channel 6 just ran an entire special on credit.  Check out their website.  

Unfortunately, just about everything can effect your purchase and rate.  You can still get a mtg with a 540 FICA-  just have to know the right people--The more people who run your credit the lower it goes.  

Do you have money in the bank and a full time job for at least 2 years?  The financial institutes want to see at least 2 mths extra of what your mtg pymnt will be.

Answer 2

No...a paid charge-off will not stop you as long as you have a good history from that date.

Answer 3

You will have trouble getting a mortgage with only 5% down right now. Origination standards are very strict at the moment. Assuming you've paid the obligation, your total credit score is what matters.

The best thing you can do is to check out your FICO score at myFICO.com. Check out to see what damage you have, and take it from there.