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Old 07-10-2018, 04:32 PM
 
2,690 posts, read 1,261,609 times
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1) Regarding credit cards, will the lender look at what the "minimum" credit card payment is or will they calculate based on what I actually pay on the CC each month?

In other words, if a minimum payment is $ 25.00 but I pay more than that ($ 100.00), what number will they use for that debt field?

My FICO is excellent and I don't exceed 30% of my credit line.

2) Also, will they verify rent amount or will they only check to see that I have made timely payments?
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Old 07-10-2018, 05:15 PM
 
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1. they will use the amount on the credit report, unless it is something like an AMEX that is paid in full every month, or if you can prove that it is a business account that is paid by your business if you are self-employed.

2. We do rent verifications about half the time, anymore. If your credit is strong, you might not even have that as a requirement.
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Old 07-10-2018, 05:21 PM
 
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Quote:
Originally Posted by Pfhtex View Post
1. they will use the amount on the credit report, unless it is something like an AMEX that is paid in full every month, or if you can prove that it is a business account that is paid by your business if you are self-employed.

2. We do rent verifications about half the time, anymore. If your credit is strong, you might not even have that as a requirement.
Thank you...

Not an Amex, good FICO (740 is pretty good, I think). I need to get my DTI down, though. My mortgage will be cheaper than my rent, but my rent is so high it will hurt my DTI if they check. Vicious circle.
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Old 07-10-2018, 05:30 PM
 
Location: Austin
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Quote:
Originally Posted by Eeko156 View Post
but my rent is so high it will hurt my DTI if they check. Vicious circle.
Can I ask why you think your rent would count as debt in your ratios? Unless you're going to continue to rent while you own a house and your mortgage is an investment loan, the rent amount goes away so that does not get factored into your DTI.
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Old 07-10-2018, 05:36 PM
 
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Originally Posted by FalconheadWest View Post
Can I ask why you think your rent would count as debt in your ratios? Unless you're going to continue to rent while you own a house and your mortgage is an investment loan, the rent amount goes away so that does not get factored into your DTI.
True...I have never applied for a mortgage and was not sure if they would inquire about my present living situation to help determine my "risk".

Thank you....
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Old 07-11-2018, 08:30 AM
 
Location: Austin
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Quote:
Originally Posted by Eeko156 View Post
True...I have never applied for a mortgage and was not sure if they would inquire about my present living situation to help determine my "risk".

Thank you....
You have partial information. They look at your rent to see if there is going to be a "shock factor". This is when someone is used to paying, for example, $500 for rent and their mortgage will be $2000. It's a big shock to increase a monthly debt $1500. The buyer becomes a risk if borderline on credit and debts.

You said your mortgage will be less than the rent, so you won't have a shock factor.
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Old 07-11-2018, 11:05 AM
 
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Definitely no "shock factor", even after adding in taxes and insurance. I currently pay more than $ 1300.00 in rent, not including "pet rents" for my 3 animals. The monthly payment in the price range I am looking at for a small bungalow would be around $ 900 - 1,000.
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Old 07-12-2018, 08:52 AM
 
12,018 posts, read 9,325,498 times
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Quote:
Originally Posted by Eeko156 View Post
1) Regarding credit cards, will the lender look at what the "minimum" credit card payment is or will they calculate based on what I actually pay on the CC each month?

In other words, if a minimum payment is $ 25.00 but I pay more than that ($ 100.00), what number will they use for that debt field?

My FICO is excellent and I don't exceed 30% of my credit line.

2) Also, will they verify rent amount or will they only check to see that I have made timely payments?
No they should use the minimum payment on the card. If they use a higher amount you can dispute it and present your statement to show the minimum. Lets say you make 2 monthly credit card payments of $500 and your minimum is only $75 a month, they can't use $500 that would make many people not qualify in their DTI ratio.

As far as the rent, it's up to the bank. Mine didn't ask me, they know if there are any problems if you have evictions or other problems on your credit report. They can request receipts or to talk to the landlord or cancelled check copies if they want. With me they didn't, but my credit was in the excellent range
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