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Mortgage approval amount and almost paid off car payment

We are thinking about buying a new home. I have 6 months left on my carpayment (they are high, we financed short term with no interest). At what point will this not count towards my monthly expenses as it is almost paid off? I was told before (think it was 3 months) but I can't remember. Thanks! by jaime@shermanco.com from Kerrville, Texas. Feb 6th 2011 Reply


Rich Constantine (rconstantine)
#321 ranked lender in California - 79 contributions

We can already not include the car payment. Usually 5 months or less and we can exclude from the DTI debt to income ratio. Especially since it will take 30-90 days to find and close on on a home. What else can I do for you? We lend in all States.

Feb 6th 2011
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Patrick Bodine (pbodine)
#17 ranked lender in Minnesota - 25 contributions

If you have less than ten months to pay on an instalment loan we can exclude it from your debt to income ratio.Please dont hesitate to contact me with any other questions or for a mortgage quote.BNC National bank is a nationwide lender with competative rates and fees.Patrick Bodine SR.Mortgage Consultant 650 Douglas Drive North Golden Valley, MN 55422 Cell:651.248.0467 Office:612.305.2284 Fax:612.766.9884 Email:pbodine@bncnationalbank.com Website:www.bncnationalbank.com/minneapolis/pbodine

Feb 7th 2011
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Daniel Lotter (dnllotter)
#28 ranked lender in Colorado - 52 contributions

The minute you pay the car off it will not count towards your Debt To Ratio. If your buying in Colorado please look us up - Tri Star Funding, LLC or call me Daniel Lotter at 719-963-3002. You can check us out on the web at: www.tstarfunding.com - I will let you know exactly what you can qualify for and get you into your new home fast and easy. ThanksDaniel LotterTri Star Funding, LLC719-963-3002 cell719-877-489-8249 toll free

Feb 6th 2011
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#0 ranked lender in

That 3 months deal is inaugurate. I have heard similar claims from people who do not know underwriting guidelines and those deals do not close.You need to pay it off.

Feb 6th 2011
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mitch cannavino (mitch@amlsfl.com)
#108 ranked lender in Florida - 3 contributions

typically less than ten months left on a loan we can remove that debt from your debt to income ratios.

Feb 6th 2011
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#0 ranked lender in

If you have 6 months left on your car payment and if you are planning to buy a house it is depends on many things but normally we can omit the car payment out of the debt to income ratio since it will be pay off within 6 months but then you will need to supply mortgage company with either a certified letter from the auto loan company that you have the loan with or the latest bill which shown how much you owe and how much it is per month. It is your choice then to pay it off or keep it. You can call the mortgage company to see if you qualify for mortgage at the amount that you want with the car in there because maybe at this point you will not need to pay it off as yet so it is depend really. If I can be further assistance for you with your mortgage needs or simply a question then please contact me. My name is Ana and I am senior loan officer at First USA Home Loans at 1-877-472-9887. We have several loan programs available including first time homebuyer program.

Feb 6th 2011
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Matt Baker NMLS#190779 (matt@approvemefha.com)
#34 ranked lender in Arizona - 75 contributions

All main investors will not count the payment with less than 9 months left on an installment debt. Car loans are installment loans. as long as it is not a lease and it is a car loan you are fine to exclude from your debt ratio now.

Feb 7th 2011
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Patrick McCarthy (PatrickM)
#25 ranked lender in Ohio - 195 contributions

Hello. If the car payment is not a lease, then you do not have to count it in your debt ratio with 6 payments left. I highly urge you to get pre-qualified again and hook up with a reputable realtor to assist you in your property search. I can provide you with a reputable agent and the pre-qualification you need. Feel free to call me with any other questions you may have. Patrick McCarthy, Northpointe Bank, 866-901-3576.

Feb 7th 2011
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#0 ranked lender in

I would recommend going with a direct lender. You are getting advice that 10 payments or less and you don't need to count the payment. That used to be the standard. However in todays world that is now at the underwriter discretion. Many underwriters today are counting that payment especially if it a high payment amount. IF you are in IL we are a direct lender and I can walk the file right into my underwriter and get a pre approval and not a pre qualification.

Feb 11th 2011
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#0 ranked lender in

inaugurate? is that a word?LOLBad keyboard, bad!!INACCURATE

Feb 6th 2011
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