Car is not in my name/DTI

[lmg8182]

Hi All,

I have a question about mortgage pre-approval and underwriting.   I have great credit, scores in the 800's and am looking into FHA and 5% conventional loans.

I got preapproved from a "mortgage company" and  am concerned about the "leniency of this lender".  I currently lease a car, but it is in my Dad's name in order to get the A plan pricing.  While it is in my Dad's name, I always make the payments.

The car doesn't show up on my credit report, and while I told my loan officer about it, he said it didn't matter since it wasn't on my credit report.   I feel like the amount he preapproved me for was high and plan to look from homes way under that amount.  

My question would be; will this payment come up in underwriting? Will it count in  my DTI if it is not on my credit report?  I don't want to things to fall through at the last minute!!   

Thanks!

[Hoya08]

If your name is not on the lease agreement (primary, co-signer, etc), it will not show up on your CR and thus will not offcially count towards your DTI.

[creditocd]

I'm in the same boat.  I don't know if I should report it when I get preapproved.

 Even though it won't officially count toward DTI, can it play a factor in how much you are preapproved for?   I feel like underwriting will see the amount coming out of my checking account each month and know it is technically my debt, even though not in my name.

[Hoya08]

The only debt that will count against your DTI are debts reported on your CR.

There are plenty of online calculators to show what you may qualify for based upon your DTI, with and without lease payments.  Use those numbers to gauge how-much of a home you can afford, and how-much you are comfortable with.