Cash Flow Question

[armywifelong03]

Hi All,

I just have a question.  When they look at your bank statements for a VA loan, are they looking for cash flow at all?  I know they are looking for overdrafts, etc, but I wasn't sure if they would be looking for balances carried over or not.  I am asking because we are diligently working to have our credit cards paid off by Aug when we apply and so all of our extra money is going towards that and I wasn't sure if we need to back off of that at all?  Any advice? Thanks!

[tooleman694]

Yup they will look at that too, but you can explain it.

[armywifelong03]

Thanks!  I am paying over $1100 a month trying to make sure all balances are at zero, otherwise, we would have a huge carryover balance each month.  I will have them all paid by next month, so I guess we will see.

[foofighter74]

We did the same thing in terms of using extra money to pay down credit balances and raise my wife's credit score...the only thing the lender looked at in the end was whether or not the money was in the account after our initial payment to the builder cleared to close on the loan.  Our balance, at one point, was quite low, but we built it back up rather quickly and it was never an issue.  They even looked at the statement where the balance reached it's lowest before climbing again but it was not a problem.