Hi! I'm wondering if credit card payments I make monthly to credit cards in my parents name (read I am not an authorized user, so these don't show up on my credit reports) would count towards my DTI formula when I apply for pre-approval then mortgage. Appreciate any and all replies!
Lender · Glenview IL- CDLP NMLS#230554 · Member since 2015 · 2k+ posts · 747 votes
6y
@James MacFarlane There will be question from Underwriter when they will see a payment going out from your bank account but you can explain in letter from to Underwriter.
Hi! I'm wondering if credit card payments I make monthly to credit cards in my parents name (read I am not an authorized user, so these don't show up on my credit reports) would count towards my DTI formula when I apply for pre-approval then mortgage. Appreciate any and all replies!
They won't count against your DTI if you're not responsible for them.
Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
6y
@James MacFarlane
Personally, I wouldn’t think so. I would think they normally are looking on your credit report for what you are “on the hook for.” I don’t have personally experience with this, but I’d be somewhat surprised if they matched up your payments from your bank statement to your credit cards — they’d have to just count transactions. Unless your parents are spending a lot on their card, my personal layman’s opinion it shouldn’t be a big deal. and if they do ask, you have a reasonable explanation
Harjeet Bhatti, Stephanie P., David M. Thank you all very much for your time and information. Your inputs were very valuable to me!! Take care and be safe!