Mortgage amount of debt or monthly payment

[Sabrian31487]

What do lenders usually look at, the balances of your credit card or the monthly payments of them? My debt to income is 17/26 so not to worried about it but just wondering if they really worry to much about what the balance you are carrying is.. Thanks

[Anonymous]

Mine just used the min payment, I think this is the most common approach. I do believe it varies between lenders. Not sure how much the bal is considered mine was several times the min but I still paid in full. I'm sure very large amounts of debt are looked at a little differently.

[Anonymous]

Our LO just used the minimum payment. He didn't mention balances. But I guess the balances effect your score so if they wanted you to bring your score up they'd probably mention lowring some balances.

[onstar]

It's always the minimum required payment showing on the most recent credit report. Which is why even if you pay your credit card bills in full each month and don't carry any debt, they will still affect your DTI ... unless you pay the bills before the statement cuts.

[Sabrian31487]

The thing I'm worried about is if the appraisal comes back saying that repairs need to be done on the house before they can close the loan (and it is USDA loan so in sure they will find something to nit pick) I just want to make sure they if I have to make the repairs on a credit card it's not going to effect me getting the loan. If I do do repairs on the house is there a "commitment to loan" that I can request from my lender because why should I make repairs on a house if it could come back that they deny my.. I have the conditional approval and have met them all except for the appraisal part which is underway and they gave me 7-10 days. I have 155000 worth of credit limits spread on 40 credit cards (yes I know I need to stop) and only have 1500 reporting on 2 of the 40 cards (750.00 on a 12000 limit, 750 on a 22000 limit which I will probably have to make the repairs on this card). Just want to get everyone's opinions of my situation. My debt to income ratio is 17/26. This whole process just has my skin crawling.. Thanks for all the answers so far..

[StartingOver10]

If this is a purchase, the seller would make the repairs. If you have agreed to make repairs at your expense so the property qualifies for the mortgage then any charge you add to the cc's will be counted in your DTI. Just to be clear, it is the min monthly payment on your cc's that is used to calculate the DTI + the new housing payment.