Posted by Ed Garcia on February 23, 2001 at 09:44:51:
Jim,
No, I think someone gave you one lenders policy. The rule of thumb I’ve seen is 3 to 6 months. My suggestion is to put it on your application; they’re going to pick it up anyway when they do your credit check. I don’t want them to think that you’re trying to with hold information to qualify for a loan. Now as you hand in your application and paper work, you may point out to the loan broker that the car payment or what have you, is short term and that might want to be considered when figuring out your debt to income ratio. A good lender what have picked up on that anyway.
Posted by JimG (OH) on February 22, 2001 at 23:07:30:
A newbie here,please help!
I read that when applying for a home loan if you have 10 months or less left on an installment loan, you do not need to include it with your monthly expenditures.
(1) is this true?
(2) would that include a car lease?
Re: loan application question - Posted by JimG (OH)
Posted by JimG (OH) on February 23, 2001 at 11:09:11:
Thanks for input. I totally intended to mention it to the lender, (I get the feeling that they can find out if I picked my nose last week!), I was just trying to pre-qualify myself for a loan amount at home first. I’m surprised that the info I got was from a nationally released book, and they stated it as a-matter-of-fact. Course it was one of those ‘Idiot’s guide to…’ books. Maybe they’re the idiots!
Re: loan application question - Posted by D-weezie
Posted by D-weezie on February 23, 2001 at 10:39:16:
I agree with ED. Generally lenders consider 6 months or less to not count the debt in your calculation. And by placing it on your hand written application shows honesty and character. The lender will find it on your credit report and wonder why you did not put it on your application and then the underwriters (HIT MEN) :0) will look for other discrepencies and begin to ask more questions. It is better for you to have the loan officer not include or remove it on the typed application (1003 lender talk for application) instead of not presenting it upfront. (C.Y.A.) COVER YOUR *** until you close is my best advice.