Posted on: 15th Aug, 2011 10:52 pm
I'm on active duty and want to take out a VA loan. We're planning on buying a house in the next few months. There is this really beautiful bank owned house which we want to purchase. Also, recently the house just dropped in price 18k!!! However, our dti ratios are high and in order to get a pre-approval, we’ll have to pay off the car loan.
We don't want to lose the house. So, is it possible for banks to pre-approve us for the required loan amount as long as the car loan gets paid off by closing? This will help me secure the loan for this property that both of us love. Do you think the lender will agree to this even though presently the dti ratio is high? We want the pre-approval letter to show the seller that we are serious about the deal.
We don't want to lose the house. So, is it possible for banks to pre-approve us for the required loan amount as long as the car loan gets paid off by closing? This will help me secure the loan for this property that both of us love. Do you think the lender will agree to this even though presently the dti ratio is high? We want the pre-approval letter to show the seller that we are serious about the deal.
Hi Jen,
With a high debt to income (dti) ratio, it won't be possible for you to get pre-approved for a mortgage. I can understand that you don't want to lose the beautiful house that you've seen. But I don't think the lender will pre-approve you unless you've paid off the car loan and reduced the debt to income ratio.
Thanks,
Jerry
With a high debt to income (dti) ratio, it won't be possible for you to get pre-approved for a mortgage. I can understand that you don't want to lose the beautiful house that you've seen. But I don't think the lender will pre-approve you unless you've paid off the car loan and reduced the debt to income ratio.
Thanks,
Jerry