Hi everyone, i'm in the process of getting preapproved for a mortgage and I have 7 months left to pay off my car, I was wondering if they factor that in to my Debt to Income Ratio? Thank you very much.
yes. Any payment that is over 100 they factor in unless it is paid off. If it was a $50/month personal laon that was a few months from being paid off, they MAY not factor it in. A car payment will be counted.
When I worked at Suntrust we did not count any loan that was within 6 months of being PIF. Things may have changed a little since then ( 8 years ago). I would call some lenders and ask them.
