Need opinions for paying rent with credit card for mortgage..

[Sabrian31487]

You sir, just gave me a spark of hope lol! I hope you are right

[Mrsg714]

Are you using your rent payment AND future mortgage monthly payment to calculate your DTI? I'm not sure if in understanding you correctly. When I applied for my mortgage we still had 3 months of rent payments to make as well. We continued to pay our rent as usual, but it wasn't counted as a debt. Apologies if I've misunderstood the question.

[Sabrian31487]

Yes I have 3 more rent payments that I need to make until my lease expires .. I'm still living there until I move into my house.. The process is going much quicker then I had anticipated and the seller wants to close in September which will mean I will only have 2 remaining rent payments then I will only have to worry about my mortgage.. I live in an apartment at the moment where my rent is 700 1 bed 1 bath and getting a home with 3 bed 2 bath for 500 a month mortgage!!!' That's why I'm in a panic lol

[Mrsg714]

I have a $200/month savings from my old rent payment as well. It's great having all this extra space for less! Your rent should not factor into your DTI even with those remaining two months left to pay. We planned it so that we would still have time left on our lease just in case. Our old landlord actually offered to apply our deposit to one rental payment and then we just paid the remainder. It worked out. You should be fine as long as those 3 remaining rent payments aren't cutting into money that you need for reserves (if applicable).

[onstar]

In a scenario like this, I've never heard of rent being included in the DTI. I've used 3 different mortgage softwares, and none of the programs count the current rent when calculating the DTI. Generally, the DTI is calculated by adding up everything that shows up in your credit report (all the monthly payments of installment debts and minimum payments of revolving debts), then adding the new mortgage & housing expenses (PITI+HOA), then dividing it by your gross monthly income. Does your rent show up on your credit report? I've seen thousands of credit reports and never once seen rent show up in them.

Without bringing this up, you can ask your LO what your DTI is and how it was calculated. Make sure that every tradeline is correct and also make sure that your monthly gross income is correct.