DTI is a common problem and I get several calls from mortgage officers asking questions on it. What should I have the client pay? First and foremost I would have them pay on the credit card debt. Paying this down will not only help the DTI but also help the FICO score.
I have had several questions that state "What if we have the client refinance one of his auto's lowering the payment?" This will help the DTI a little bit but the score very well could drop. You have an additional inquiry and you also have a new account with "0" months in review. Until those months in review get back to at least six it is going to hurt the score a little.
Always have your client pay on something that will report quickly and will not cause a inquiry on the credit.
Have a wonderful day and everyone close two deals. God Bless!
Comments(3)