Hi,
I’m curious if anyone has dealt with this situation. I’m currently in the process of purchasing a new home. However, on my loan offer/contract I noticed that my debt from my prior mortgage is listed on the offer. My situation may be unique due to I was to be removed off the prior mortgage through a mortgage assumption with a prior partner only several weeks back. I have the legal documents signed by me (seller) ex partner (buyer) and the note owner (lender) witnessed by a notary, with a statement releasing me of liability of the note. I was paid a lump sum which is being applied towards this new home. With this mortgage under my name I do not think I would meet the DTI requirements. Do you think this would be an issue for the underwriter and if so how do I proceed to clear this up?
Prior mortgage reported as debt
byu/AnalViolator13 inRealEstate
Posted by AnalViolator13
2 Comments
All you’ll need to do is provide the paperwork you mentioned and they’ll remove it from your DTI calculation.
yes, it can be an issue if the old mortgage is still showing on your credit report. share the assumption and release documents with your loan officer so the underwriter can update your file and remove that liability from your DTI.