payday advances

[Anonymous]

Prior to closing, can a lender check or find out if you have current payday loan, I ask because I am thinking about getting an advance to take care of something but I  don't want to use the money we have in the bank set aside for closing.  I know that they payday lender doesnt do an inquiry on the credit report but I just wanted to check here to see if anyone was familiar with this. 

[DallasLoanGuy]

failure to disclose the payday loan would be fraud.

 talk to your loan officer.

[kball64]

Just say NO to payday loans! IMO, If you need to take a payday loan then maybe you should think twice about buying a house.

[Anonymous]

A couple points...

1. As Dallas said, not disclosing it would be fraud

2. As other poster said, if you need a payday loan, you probably should not be buying a house.

3. If this deal falls through or closing gets delayed, at some point they will want updated bank statements and it will show.  If youhave not disclosed it this will get your deal 86'd fairly easy. 

4.  Last, taking out a payday loan and disclosing it could get you 86'd because the UW us going to figure  that if you are so tight that you need the few hundred a payday loan can  do to get by, you are not a legitimate risk to lend to.  Not to say that they will deny you just based on this, but typically people in this situation already are minimal reserves/cash and also typically have mediocre at best credit (again, not always). 

In the end, do not do it...