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Question about car loan disclosure

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Anonymous
Not applicable

Question about car loan disclosure

Hi- I'm looking to buy a condo within the next 6 months.  I have a car loan through my credit union with two years left on it.  The car loan does not appear on any of my credit reports.  Payments come directly out of my credit union account.  My question is does this need to be disclosed when applying for a mortgage so that they can figure this into the debt to income ratio?  Please advise.
Thanks
 
Message 1 of 6
5 REPLIES 5
Tuscani
Moderator Emeritus

Re: Question about car loan disclosure

You should..  But technically if it isn't on your reports then it doesn't exist to an underswriter.
 
I would find out why it doesn't report though. Auto loans provide a good mix of credit which is important.
Message 2 of 6
Anonymous
Not applicable

Re: Question about car loan disclosure

I'm wondering if I don't disclose the loan if they will still find out.  When I present my pay stubs it shows a deduction for my credit union account and I figure they will ask to see a statement to see what's in the account for assets.  Right?  Well it's listed on the credit union statement.  Do you think they will ask to see a statement?
Message 3 of 6
Tuscani
Moderator Emeritus

Re: Question about car loan disclosure



denailt1 wrote:
I'm wondering if I don't disclose the loan if they will still find out.  When I present my pay stubs it shows a deduction for my credit union account and I figure they will ask to see a statement to see what's in the account for assets.  Right?  Well it's listed on the credit union statement.  Do you think they will ask to see a statement?



Good point. You certainly do not want to get caught in a lie. Plus it is unethical not to tell them.
Message 4 of 6
scoreupper
Established Member

Re: Question about car loan disclosure

If they do I would tell them no thank you, I dont want to include it in my assets that are disclosed. When I bought my second home I chose not to disclose numerous cash accounts that I had including a retirement account. The reason they want to see any statements is to look at reserves. If you have provided enough info and think you should be approved stick with that.....if they want more and you still want the loan then disclose.
 
Make it in your terms...for all credit transactions!
TU EQ EX 687 659 689 11/5/2007
700 669 689 12/7/2007
Message 5 of 6
Anonymous
Not applicable

Re: Question about car loan disclosure

Not telling them is actually Mortgage Fraud (not telling them about assets you do not wish to include for the qualifications is not fraud) - if they find out you have the car loan before you settle then they will probably deny the loan.
 
If you can wait to buy or have the extra funds - pay the loan down to 10 months left on the life of it - then it is not counted in your DTI.
Message 6 of 6
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