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Hello all, I could really use some help (especially from DallasLoanGuy!, Ive been reading your responses on here for a while) regarding a refinance application and have a few major questions about what might affect my approval?
Here it goes. I have a mortgage with about $410,000 still owed on it, and the house was appraised at $650,000. I applied for a refinance application and just went into underwriting yesterday. I have no other installment loans such as auto loans etc, but do have credit cards with about 20,000 in balances out of 75,000 in limits. Most of it was from a furniture credit card that I opened and put $15,000 worth of furnture on at 0% interest for 5 years. I have a few other cards with small balances and huge credit lines that I use for grocery shopping and electronics and stuff.
Here is the question: is it really bad that the balances are so high? In relation to the limits that I have though, its not so bad right? Also, are they going to ask me about this before closing? I already got the pre-approval before and the loan guy said I should be fine no matter what since my equity in the home is so high (and my income is $275,000/yr).
On the application, it says my total monthly liability payments are $515.00, and my total net worth is $1,200,000. This should not be an issue right? I could pay off the furniture credit card right now if absolutely necessary but I really don't want to since its a principal thing -- the bank is letting me borrow the money for free so why not use it you know. Thanks!
As long as your monthly DTI (house payment + min. credit card payment divided by your income) then you are fine. Sounds like you sound be good to go by the numbers you posted.