credit cards and mortgage

[MovingForward_2012]

The min payment is listed under every credit card account UNLESS it is NPSL. They just rolled out a new requirement for NPSL accounts. If the NPSL card has a balance, it must be paid before you can get cleared to close.

[MovingForward_2012]

Here is the website: http://www.bankrate.com/finance/mortgages/charge-card-affects-mortgage.aspx

I misspoke. It doesn't have to be paid to close but you must show you have the funds to pay it before you can get cleared to close. These funds, that are required, are on top of the downpayment, closing costs, and required reserves. If you don't have the funds to pay the NPSL card, closing will be delayed until you do.

[09Lexie]

MovingForward is correct. Min mo pyt is used to calculate debt to income.

[bs6054]

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@MovingForward_2012 wrote:
Here is the website: http://www.bankrate.com/finance/mortgages/charge-card-affects-mortgage.aspx

I misspoke. It doesn't have to be paid to close but you must show you have the funds to pay it before you can get cleared to close. These funds, that are required, are on top of the downpayment, closing costs, and required reserves. If you don't have the funds to pay the NPSL card, closing will be delayed until you do.

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Thanks, I was trying to see the pattern on my EX report as to which cards had a min pay and which didn't.   When I looked more closely, all but 2 did (including all the flexible payment signature ones).  The exceptions were

1) Amex BCP

2) ONE of my identical PenFed cards, the other one did!  No idea why this is the case.

But thanks for the answer, so with a large number of credit cards, even at 0 balance, your DTI can be hit with hundreds of dollars of imputed minimum payments.  So, one danger of too many credit cards!

[pineappledaydreams]

Yup. Gona close a few. thanks for all the info

[MovingForward_2012]

You're welcome all. All your statements are correct in response to my post.

Sometimes, if the CC has a zero balance, it won't be counted in your DTI. I read a couple of stories about this on the mortgage forum. But it is highly lender dependent.

[Adalen]

I would not close out cards just to app for a mortgage.  At least talk to a loan officer first.