Will I have issues during closing?
Hello, my wife and I are closing a house in two weeks. We’re debt-free except for an Amex which we pay in full monthly. The loan processor contacted us 2 days ago and told us that the underwriter wanted this at zero dollars before we closed so I had to pay it off. I was wondering if my employer paid me in advance will this come up on VOE? I’m worried that this might cause some issues with closing if shows up in the VOE? Do you guys have any advice for my situation? by mhanoh88 from Grand Canyon, Arizona. Jul 21st 2022
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions
Old fashions "Pay in full" monthly AMEX cards cause problems because the credit report shows the entire balance as a payment on your credit report, which always screws up your debt to income ratio. I suggest people get rid of those cards, and use a standard card that has the typical low minimum monthly payment - even if you pay in full each month. In this situation, your lender is going to either need you to pay that balance to zero, and show an updated statement showing a zero balance, AND prove where the money came from to pay it to zero / OR the lender is going to require you document you still have enough money left in the bank after paying your down payment and closing costs to pay that loan in full. Any good Loan Officer should have caught this situation at loan application, and it could have been dealt with then. This is a good time to point out the importance of using an experience Loan officer, not just some application taker. I lend for properties in MN, WI, IA, ND, SD. Find me at Wi-MortgageBroker.com - Cambria Mortgage, NMLS 274132
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