I know this is off topic but I know there are a lot of you that are repairing(or have repaired) your credit to apply for a home loan. I was wondering if someone could tell me what the mortgage people are looking for with the bank statements. Are they trying to figure out how much you have at the end of the month?? Or are they trying to figure out exactly where your money goes each month??? I'm a bit worried about both. First our bank balances are a little low because we have been paying well over minimum (ex..$300 pymt when $50 is minimum due) on all of our resolving cc debt to reduce it before applying for a mortgage. Also..one other thing bothers me. This is for a VA LOAN and my husband is applying alone. I have had my own home business since August. I have a debt of my own. Will they count this against my husband since I don't work outside the home?? The pymts do come out of our joint account because that is the account where we have web bill pay (online bank service). Should I have the payments for my debts come out of my personal account so they won't count it against my husband? Thanks in advance..
you should always have your own business account for small business.. They want to make sure you aren't lying or have other debts that are not disclosed in the application. They will be able to verify your DEBT RATIO very well by looking at your expenses.. For this reason it is always good to have multiple checking accounts. 1 for business 1 for you 1 for him (another 1 for you, another 1 for him) That way you can organize your income/expenditures to look good or bad. for the right person. A joint account is the worse thing to have alone. Here is a situation why: Say hubby loses job, cant pay bills, etc. gets checking close, you are screwed jointly. But if you have separate credit, banking, etc. And hubby loses job, gets behind on debt, etc. You are still good credit. Situation #2 divorce: 50% of all marriages fail. Other person can ruin YOUR credit easily. been there done that, never again make that mistake. Sorry i got off-topic, i'll stop preaching.. I'm not going to preach any more but to keep on topic. I suggest you get separate account, because they are going to scrutinize HIS expenses even though it may be your money..
The other thing they are looking for is large deposits. If you have any, they will require an explanation. They want to make sure that noone is lending you money for a down payment, etc.
Thank you so much for your responses! So are you saying that even though the debt(student loan) is not in his name he will be penalized because it is coming out of our joint acct??? At any rate, it is probably too late since they want the last 3 months of bank statements. Ugh..I tell you..this is one headache after another one. Thanks again for your help....
yeah its kinda late, but hopefully others will take this information and use it for good in the future!!
I was just looking over the mortgage application and it says in the instructions: Co-Borrower information must also be provided (and appropriate box checked)when the income or assets of a person other than the "Borrower"(including the Borrower's spouse)will be used as a basis for loan qualification or the income or assets of the Borrower's spouse will not be used as a basis for loan qualification, but his or her liabilities must be considered because the borrower resides in a community property state, the security is located in a community property state or the Borrower is relying on other property located within a community property states as a basis for repayment of the loan. I'm focusing on the part where it says that the liabilities must be considered if they reside in a community property state....We live in Virginia which is not a community property state. Sooooo they shouldn't be able to hold him liable for my debt. Correct??? Just want to make sure I'm reading this right and that I'm not making it more than it is. Obviously I want it to say that they won't consider my debts that are in my name when considering whether or not to give us the loan. THANKS for any help that you can provide. I know this board is not specifically about mortgages but I also know that many of you are very knowledgable about the subject. Thanks in advance....
Generally speaking, if your husband is applying singly, then you liabilities and assets are not looked at to determine if he qualifies and is approvable for a mortgage. This is true whether it is a VA, FHA or conventional mortgage. If your husband is applying for a full doc loan, then all they will look at is him. Good luck on the mortgage. fla-tan
