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Originally Posted by MZ DAIZY
They went back and found some CC payments that were late.
As far as refi, was told house overvalued and debt to equity was questionable. This is why being self employed most of my life comes back to haunt me.
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Late payments in itself won't prevent anyone with moving forward with a mortgage. The effects of the late payment, such as dropping in score and how much, and the status (i.e. charged off, collections, etc.) may play a factor. The type of loan also plays a factor.
The only way to know whether a house is "overvalued" compared to what you owe is getting an appraisal done. Without this, a loan originator cannot determine a value of a home.
Being self-employed can be tricky, but as long as the taxes are done correctly and matches the bank deposits, it shouldn't be an issue. I've closed plenty of SE borrowers during my time and the biggest key is not writing off anything and everything you can and to show that you make the income to which you claim you have made. I had a client that made over $800K gross, but wrote off so much at the advice of their tax accountant and we could only use about $120K.
One thing I will always tell people is to shop around and get multiple opinions. You could get better service and attention, as well as possible better rates, by going to a brokerage rather than a bank (most brokerages should have the ability to shop around to see what the best rates you could qualify for, whereas banks will typically give you what THEY have to offer).