Refinancing Car to Meet DTI Requirement

[agekeith22]

For the mortgage that I am seeking I am a tad over the 43% DTI, but I can meet the 43% requirement if I refinance my car note (reducing my monthly car payment by $150).

My question is, should I refinance before seeking pre approval, or should I just wait and let the LO advise on this?  Also, could I get pre approved for a larger mortgage contingent on refinancing my car note?

[p-]

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@agekeith22 wrote:

For the mortgage that I am seeking I am a tad over the 43% DTI, but I can meet the 43% requirement if I refinance my car note (reducing my monthly car payment by $150).

My question is, should I refinance before seeking pre approval, or should I just wait and let the LO advise on this?  Also, could I get pre approved for a larger mortgage contingent on refinancing my car note?

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Tough call...  the refi would cost you an inquiry, which may hurt you. 

More important is your payment amount.  Are you really going to be comfortable paying that high a mortgage payment with all of your other bills?  

[agekeith22]

A little background:

credit scores- all in 750 range, will be reducing my utilization to 3% which should push them a little higher

Salary is $130k per year

debt- $400 car payment (refinancing would lower it to $250)

child support- $900 per month ( will end January 2017)

I plan to build a new house with a closing date of April 2015 so I will start pre approval process in July 2014.  So, trying to make a strategic plan right now.  I do feel comfortable at 43% since I have a good amount in cash savings, $50k, and will be able to save an additional $900 per month once the child support ends.  Not to mention, standard 3% raises every year.  I also have healthy 401k and stock options.

I just want to get my family into our forever home, good neighborhood and school district before my young kids start school, so I am willing to reshuffle my debt a bit to do it.

[DallasLoanGuy]

this likely wont be a problem..... i would do the refi sooner than later.... rates are only going up.