I am currently going through VA cash out refinance application process to pay off some debt. We have submitted the last 2 months of bank statements, IRS 4506T - Request for Transcript of Tax Return, termite inspection report, paid for the appraisal along with signing other electronic documents. I was advised once the appraisal comes back our file will be submitted to underwriting.
I am trying my best to be prepared for anything and everything for the underwriter. Our closing date is set for the end of this month. We have no negatives on our credit report and our lowest middle score is 736. My biggest concern is I have a couple of credit cards that are in my name that were used for my daughter to assist with nursing school. She is currently paying off the debt and they are automatically being deducted from her bank account each month.
The debt is listed on my credit report and was included in my DTI. Since I am not making the monthly payments and it is not showing on my bank statements, will I need my daughter to gather her bank statements showing how the monthly payments are being made?. During a home purchase I remembered having to write a letter for unexplained debt. The debt did not appear on my credit report but there was a monthly debit shown on my bank statement. I am wondering do they also care about the opposite; Shows on the CR but not on the bank statement. There is a wealth of information on this forum but I was unable to find this scenario. Any UWs, LOs, LPs, borrowers or friends of borrowers that have ran across this issue? Your input would be greatly appreciated.
