This certainly falls under the list of items that in most cases people can’t help from happening. Without getting into the overall state of healthcare in the country – after all, this is a real estate article, not a political one – unpaid medical bills can be a huge factor in your mortgage qualification process.
If you’re a business owner, this is unfortunately an exceptionally tough one to get around, since your medical expenses are seen as business debt.
Again, this is for business owners, and the owner doesn’t inherit the similar debt from, say, an employee with a corporate credit card.
Regardless of the fact, a small business owner or medium-sized business owner carrying their own medical bill as debt may see their mortgage application come back with some limitations based on the lower credit score.
If this particular scenario applies to you, you may want to discuss it with your mortgage lender before they run your credit to discuss ways in which you may be able to defer that credit check, work out a way to budget for the medical expenses, or put off your home search until you’re in a more comfortable place.
As I always say, I’m a REALTOR, not a mortgage lender. So if you’d like me to put you in touch with a mortgage pro, I’d be happy to do so. Just shoot me a message via the form here: