Mortgage, bank statement and debt

[Anonymous]

Hey there! I need little mortgage advise! I am applying for a mortgage loan and submitted my 60 day bank statements and I just realized that I might have an undisclosed debt. I pay my father auto loan through my bank account however the loan is not in my name, not on my credit and not legally bound to pay it. I am just doing it to help him manage his bills. Will the underwriter see the payments on my bank statement and question it? Or decline me for undisclosed debt? Or too high of a DTI?

i am freakiing out!

[sports1965]

legally u should tell the lender

but if it doesnt show up on your record i would not mention it

[Anonymous]

Thanks for response. Yea I am torn bc I don't want to lie but at the same time the debt is not mine and not legally liable for it. Heck I can get an lox if needed for it.

[ezdriver]

Interesting conundrum. Since you are paying that debt voluntarily, it really is not your debt. We often pay debt that does not show on the credit report or public records. I would let it be and not mention it until/unless your DTI becomes and issue. Deal with it then.

[Anonymous]

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@Anonymous wrote:

Thanks for response. Yea I am torn bc I don't want to lie but at the same time the debt is not mine and not legally liable for it. Heck I can get an lox if needed for it.

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I'd tell them the truth.  Better to be safe than sorry...

[Lemmus]

...I'd be upfront with the LO about it ...but imnsho they'll say thank you and not add it to your dtir calcs ...hth

[frugalQ]

yeah, i'd disclose it too.

your LO probably will not count it towards DTI because it's not your financial obligation....unless you have some sort of written agreement with your father that you would assume the note.  the most you will probably have to do is write an LOE and/or show proof that the note is in your father's name.

look at it from this perspective.....there are many married couples who purchased a house in one or the other names only to get around the DTI issue.  Yet, it's more than likely they pay each others bills.

honestly, from a bank statement perspective, it's the deposits and the NSF fees that they are looking for....and to confirm that you have the funds to close.  I pay my credit cards before the statements cut, and sometimes there can be over $1,500 payment to a credit card that shows up on my bank statement....but on my credit report, the balance would always say 0.  The underwriter never questioned any large payments nor asked for copies of my credit card statements.

good luck!