Question
We're scheduled to close on house in 2 days. The situation is that our old car broke down last month and...?
we had no choice but to buy a new vehicle. We ended up trading it in after we got it home since there was more wrong with it than was worth fixing. Our DTI has increase a total of 1.42% and the monthly payment is $90 more a month than previous loan. Do you think we'll be denied the loan when BoA pulls credit again before closing? This is an FHA Loan. Also, loan officer did not include my annual bonus as income for the loan docs even though we asked him to. If they pull report, see the new loan and refuse funding, can we start over and ask him to include this amount to make our DTI better and still close? We did the math and the DTI they show is 52.23%. With new loan it is 53.65%. If they include bonus DTI would be 48.59%. Any feedback would be appreciated.
1 month ago - 2 answers
Best Answer
Chosen by Asker
First of all, I'm extremely shocked to hear that a bank would approve you for a loan with a 52% + DTI. Sad to say, but this is one of the reasons we are in this mess. My first thought was that you must have a very large down payment, or some other really shiny aspect of your credit application (such as major assets) in order to be approved with such a high DTI. However, if your car was a piece, then perhaps that is not the case. You are likely to be presented with a statement to sign (at closing) which states that you have not failed to disclose any accounts. If you sign that statement, and "leave out" that you bought a new car, that is mortgage fraud. Better hope your mortgage isn't audited, assuming it goes through. As far as your bonus, it cannot be included unless it has been documented as a regular, recurring income...and your employer states that it is likely to continue in the future. BoA may or may not pull your credit again right before closing. But I'm telling you, if you get caught lying about debt and get convicted of mortgage fraud, you will lose your house and maybe a few other important things in your life.
1 month ago
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Other Answers
Once you are approved for a loan then it's usually still good. The loan will still go through even with the new car. Good Luck!!!!
by Reggie- 1 month ago