cancel
Showing results for 
Search instead for 
Did you mean: 

Credit Card Debt Reporting and I'm About to Close...What to Do?

tag
Anonymous
Not applicable

Credit Card Debt Reporting and I'm About to Close...What to Do?

I've had 2 financial emergencies and not sure if I can even close a this point.   I've had to use 2 credit cards throwing my DTI out of whack and I can't pay these bills until around 12/30. I tried to choose cards that had already reported, that I've received statements for but the balances reported anyway despite it being offcycle.

 

Should I alert my loan officer or just see how things play out?  I'm devastated.

Message 1 of 12
11 REPLIES 11
lee645
Member

Re: Credit Card Debt Reporting and I'm About to Close...What to Do?

How much debt are we talking? Your mortgage, if I understand it correctly (I'm sure someone will be along to correct me if I'm wrong) credit card debt uses monthly payments to figure DTI so small balances shouldn't effect you much. 2% of the balance is standard minimum payment. If these cards are suddenly maxed and your scores drop that may be a concern I don't know what scores you started with. Or the amount of debit we are talking. If you have $10,000 in debt that's about $200 a month payment. Hopefully it's not that close on your DTI (or balance but things happen). 

Message 2 of 12
Anonymous
Not applicable

Re: Credit Card Debt Reporting and I'm About to Close...What to Do?


@Anonymous wrote:

I've had 2 financial emergencies and not sure if I can even close a this point.   I've had to use 2 credit cards throwing my DTI out of whack and I can't pay these bills until around 12/30. I tried to choose cards that had already reported, that I've received statements for but the balances reported anyway despite it being offcycle.

 

Should I alert my loan officer or just see how things play out?  I'm devastated.


How much are we talking about? As previously stated, they should have factored in your minimum payment into the DTI already. Were you cutting it close to the threshold? If you know what your previous minimum payments were vs. your new minimum payments, you could recalculate your Back-End Ratio to see if it will cause an issue with qualifying.

Message 3 of 12
Anonymous
Not applicable

Re: Credit Card Debt Reporting and I'm About to Close...What to Do?

Unexpected car repairs have set me back. Probably off by $75.00 total and it is a game changer.  I thought when the statement period was over, nothing else reported?  The customer service representatives are not helpful in explaining how I could possibly have 2 cycle dates.  
Smiley Sad


@lee645 wrote:

How much debt are we talking? Your mortgage, if I understand it correctly (I'm sure someone will be along to correct me if I'm wrong) credit card debt uses monthly payments to figure DTI so small balances shouldn't effect you much. 2% of the balance is standard minimum payment. If these cards are suddenly maxed and your scores drop that may be a concern I don't know what scores you started with. Or the amount of debit we are talking. If you have $10,000 in debt that's about $200 a month payment. Hopefully it's not that close on your DTI (or balance but things happen). 


 

Message 4 of 12
Anonymous
Not applicable

Re: Credit Card Debt Reporting and I'm About to Close...What to Do?

Have you reached out to your loan officer yet? It would be better to speak with him/her now then wait for them to halt the process because the UW catches the new balance. On another note, and I most definately am not trying to tell you how to spend your money or judge you, but you may want to reconsider your mortgage note amount if $75 per month is throwing off your approval. Good luck with everything!

Message 5 of 12
Anonymous
Not applicable

Re: Credit Card Debt Reporting and I'm About to Close...What to Do?


@Anonymous wrote:

Have you reached out to your loan officer yet? It would be better to speak with him/her now then wait for them to halt the process because the UW catches the new balance. On another note, and I most definately am not trying to tell you how to spend your money or judge you, but you may want to reconsider your mortgage note amount if $75 per month is throwing off your approval. Good luck with everything!


Not being confrontational, but yes you are judging me.    An installment loan which will be paid in full 2016 happens to be the reason my DTI is a little tight.  My mortgage payment will be $400 cheaper than rent so it's only an issue on paper. 

 

Thanks for wishing me good luck!  We myfico-ers are the best support group ever.

Message 6 of 12
Anonymous
Not applicable

Re: Credit Card Debt Reporting and I'm About to Close...What to Do?


@Anonymous wrote:

@Anonymous wrote:

Have you reached out to your loan officer yet? It would be better to speak with him/her now then wait for them to halt the process because the UW catches the new balance. On another note, and I most definately am not trying to tell you how to spend your money or judge you, but you may want to reconsider your mortgage note amount if $75 per month is throwing off your approval. Good luck with everything!


Not being confrontational, but yes you are judging me.    An installment loan which will be paid in full 2016 happens to be the reason my DTI is a little tight.  My mortgage payment will be $400 cheaper than rent so it's only an issue on paper. 

 

Thanks for wishing me good luck!  We myfico-ers are the best support group ever.


Sorry it was interpreted that way, it was certainly not my intent. If you are able to just pay it off I wonder if your LO couldn't push your closing day out until after you pay them off? Once the balance is paid off the lender works with a service which can call the creditor and make an immediate update to the Bureaus regarding your balance and account status. It is also possible that the UW may request that once the account is paid off that you also close it. When is the closing set for?

Message 7 of 12
Anonymous
Not applicable

Re: Credit Card Debt Reporting and I'm About to Close...What to Do?


@Anonymous wrote:

@Anonymous wrote:

@Anonymous wrote:

Have you reached out to your loan officer yet? It would be better to speak with him/her now then wait for them to halt the process because the UW catches the new balance. On another note, and I most definately am not trying to tell you how to spend your money or judge you, but you may want to reconsider your mortgage note amount if $75 per month is throwing off your approval. Good luck with everything!


Not being confrontational, but yes you are judging me.    An installment loan which will be paid in full 2016 happens to be the reason my DTI is a little tight.  My mortgage payment will be $400 cheaper than rent so it's only an issue on paper. 

 

Thanks for wishing me good luck!  We myfico-ers are the best support group ever.


Sorry it was interpreted that way, it was certainly not my intent. If you are able to just pay it off I wonder if your LO couldn't push your closing day out until after you pay them off? Once the balance is paid off the lender works with a service which can call the creditor and make an immediate update to the Bureaus regarding your balance and account status. It is also possible that the UW may request that once the account is paid off that you also close it. When is the closing set for?


Sorry, I hadn't responded sooner.

 

No problem, and thanks for the advice.  This sounded like a great idea and I was ready to move forward with this  but the loan has closed and I have the keys!  Everything went smoothly with much prayer.  

 

Thanks again!

Message 8 of 12
StartingOver10
Moderator Emerita

Re: Credit Card Debt Reporting and I'm About to Close...What to Do?

Congratulations on your new home!  Now you can begin to enjoy it Smiley Happy

 

Here is to you! 

Message 9 of 12
Anonymous
Not applicable

Re: Credit Card Debt Reporting and I'm About to Close...What to Do?


@Anonymous wrote:

@Anonymous wrote:

@Anonymous wrote:

@Anonymous wrote:

Have you reached out to your loan officer yet? It would be better to speak with him/her now then wait for them to halt the process because the UW catches the new balance. On another note, and I most definately am not trying to tell you how to spend your money or judge you, but you may want to reconsider your mortgage note amount if $75 per month is throwing off your approval. Good luck with everything!


Not being confrontational, but yes you are judging me.    An installment loan which will be paid in full 2016 happens to be the reason my DTI is a little tight.  My mortgage payment will be $400 cheaper than rent so it's only an issue on paper. 

 

Thanks for wishing me good luck!  We myfico-ers are the best support group ever.


Sorry it was interpreted that way, it was certainly not my intent. If you are able to just pay it off I wonder if your LO couldn't push your closing day out until after you pay them off? Once the balance is paid off the lender works with a service which can call the creditor and make an immediate update to the Bureaus regarding your balance and account status. It is also possible that the UW may request that once the account is paid off that you also close it. When is the closing set for?


Sorry, I hadn't responded sooner.

 

No problem, and thanks for the advice.  This sounded like a great idea and I was ready to move forward with this  but the loan has closed and I have the keys!  Everything went smoothly with much prayer.  

 

Thanks again!


Congrats on the new house! I'm glad that everything worked out.

Message 10 of 12
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.