I was going to wait another six months to app for a mortgage but I found a house I really love, so I just want to go for it. My mother put my car in her name when i got it because my credit was shot at the time and I really needed a vehicle. The plan was always to keep it about two years then trade it to get it out of her name. I wanted to wait until after purchasing a home to do this. My question is, will this affect my DTI? If not, does this need to be disclosed on a mortgage app? I am just wondering because the transactions appear monthly on my bank statements. Will I have to explain this? The loan is paid on time so the payment history won't be a factor but it certainly isn't helping ME in terms of scoring. Do lenders research transactions on your bank statements to see where your money is spent from month to month? I'm not trying to get over or anything, I just don't want my DTI to appear unusually high because I'm starting my student loan repayment as well. I do have supplemental income from a pt job but I assume I cannot use it since I haven't hit the two year mark yet.
Anyone??
UWs typically want explainations for deposits that are made into the bank account. I thought that DTI was developed using information payment information from your credit report. So if the car doesn't appear on your CR, I don't know if they'd include it. I send a couple of hundred dollars to my mother each month, but that wasn't factored into my DTI.
Starting Score: EX 575/TU 534/EQ 570
I thought that was the way it worked too. I just wasn't too sure if they looked at monies out as well. I don't want to have a problem for not disclosing that information even though I intend to get rid of the car.
This is my opinion, but don't volunteer information that they don't ask for. It's not like you're hiding some huge financial issue.
+1, it is no different than sending money to the IRS every month if the IRS hasn't reported a lien.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13!
So am I correct in understanding that I have to report the expense but I can't use the extra income?
