Help me understand what a lender will consider my "liabilities"

[6speed8]

I know this can vary with who actually does the financing but I'm trying to get a general idea since the time is nearing.

What I do know - Since my income is Disability only, I will run into either: A - frowned upon an income that they can't garnish should I default, or B - Will consider it guaranteed income and not frown upon it. May elevate that if the hubby co-signs but my preference is to finance on my own.

What I'm unsure of - debt to income ratio.  Living expenses. If they need to know what is spent on rent, utilities,etc.  Since we're married and both of our names are on the lease, etc, are the living expenses cut in half ? Or can they say since either or both are liable for those living expenses, the entire amount can be deemed as "my liability"?

[CH-7-Mission-Accomplished]

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@6speed8 wrote:

I know this can vary with who actually does the financing but I'm trying to get a general idea since the time is nearing.

What I do know - Since my income is Disability only, I will run into either: A - frowned upon an income that they can't garnish should I default, or B - Will consider it guaranteed income and not frown upon it. May elevate that if the hubby co-signs but my preference is to finance on my own.

What I'm unsure of - debt to income ratio.  Living expenses. If they need to know what is spent on rent, utilities,etc.  Since we're married and both of our names are on the lease, etc, are the living expenses cut in half ? Or can they say since either or both are liable for those living expenses, the entire amount can be deemed as "my liability"?

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Things like utilities and living expenses are not counted.  Basically only things that show up on your credit reports, plus child support/alimony, tax payment plans.  Regular living expenses are not counted at all.

Rent won't be counted if you are going to be moving to the new home since the rent will go away.  

For most people payments/liabilities are credit cards, car and student loans, almimony/child support.

Think "debts" and not monthly cash flow.  If you owe a balance on something you are paying off over time, that is a liability that's counted.

[Anonymous]

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@6speed8 wrote:

I know this can vary with who actually does the financing but I'm trying to get a general idea since the time is nearing.

What I do know - Since my income is Disability only, I will run into either: A - frowned upon an income that they can't garnish should I default, or B - Will consider it guaranteed income and not frown upon it. May elevate that if the hubby co-signs but my preference is to finance on my own.

What I'm unsure of - debt to income ratio.  Living expenses. If they need to know what is spent on rent, utilities,etc.  Since we're married and both of our names are on the lease, etc, are the living expenses cut in half ? Or can they say since either or both are liable for those living expenses, the entire amount can be deemed as "my liability"?

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They don't look at garnishing wages for auto loan. You don't make payment the repo man come knocking on your door and taking car back. Even if car isn't at the register address they can locate vehicle and tow it back. In newer vehicle they have gps tracking device. They will count rent/mortgage if mortgage in your name if renting you can put 0 and live with someone and that person pay. Now if have credit card debt or any other debt where u have monthly payment they will add that in as debt to income ratio. If over 40% of income will be hard to get loan. So let say ur disability is 2500 and u already using 1500 for rent and other bills they will not approve u

[6speed8]

Thanks guys.

Sure they repo if you don't pay but they WILL come after you for the balance if they do. If they're aggressive enough, they can take it to court for a judgement. I'm confident that I'll never be in that situation but they certainly can. My hopes are that if a lender looks at rent/mortgage and credit cards - my only debt, it goes through. If the rent is considered, then the lease being in both of our names, my responsibility would be considered $650 hopefully. My current credit card balances are around $4000 and will be halved by the time I start car shopping. So my minimum payments on the 4 cards will be  $150ish a month. That $4000 is my only debt. Bankruptcy discharged in June and student loan disability discharge in July. I just found a debt to income calculator on bankrate.com. Figuring my recurring debt at $800 for half the rent and credit card minimums, I come out at 39%. If they are hesitant about that, hubby will cosign.

[Anonymous]

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@6speed8 wrote:

Thanks guys.

Sure they repo if you don't pay but they WILL come after you for the balance if they do. If they're aggressive enough, they can take it to court for a judgement. I'm confident that I'll never be in that situation but they certainly can. My hopes are that if a lender looks at rent/mortgage and credit cards - my only debt, it goes through. If the rent is considered, then the lease being in both of our names, my responsibility would be considered $650 hopefully. My current credit card balances are around $4000 and will be halved by the time I start car shopping. So my minimum payments on the 4 cards will be  $150ish a month. That $4000 is my only debt. Bankruptcy discharged in June and student loan disability discharge in July. I just found a debt to income calculator on bankrate.com. Figuring my recurring debt at $800 for half the rent and credit card minimums, I come out at 39%. If they are hesitant about that, hubby will cosign.

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Just don't add in rent. Rent u pay 0. Let say u finance whole car Na dubdefault on it and it get repo. They will turn around and sell it at auction. If not enough to cover the balance you will have on credit as repossession and balance of whatever is difference and if at auction is enough to cover what u owe it will say repossession paid. They normally won't take u to court for it. It's not worth it for them

[Anonymous]

I am in a SSDI as well. However I am single and other than a small home improvement loan I am mortage free. My utilization is 31%. I was pre-approved with Cap1. I have a cc with Cap 1 that I will be paying off and a Jessica London card I plan to pay down. Hoping to get utlization down to closer to 20%. Perhaps once you pay down cards in June you could try Cap 1.

[6speed8]

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@Anonymous wrote:

I am in a SSDI as well. However I am single and other than a small home improvement loan I am mortage free. My utilization is 31%. I was pre-approved with Cap1. I have a cc with Cap 1 that I will be paying off and a Jessica London card I plan to pay down. Hoping to get utlization down to closer to 20%. Perhaps once you pay down cards in June you could try Cap 1.

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I did the Cap One pre-qual Thursday just for kicks to see where I stand now. 'You will be contacted by phone or email within three business days" (by today) because I have fraud alerts on all my reports. They did the same thing when I applied for the Quick Silver card. "Capital One Security" called to verify it was me applying. Didn't tell me whether I was approved or denied. I just got the card in the mail 9 days later.