- We are paying off revolving debt (credit cards). We still have more we want to pay, but we are not sure if we should close them or not. What should we do? If you are looking at a situation where you need to pay off the debt to qualify for your mortgage, you will want to pay the items off in advance and then let credit update prior to my pulling the report. If the report is not updated, underwriting will either require proof the account is paid and acknowledgement from the creditor the account is closed or will have to include the payment in your debt ratio.
- I am self-employed, but I do not have 24 months, would this be acceptable? Yes, but the following needs to be analyzed to determine feasibility:
- the stability of the borrower's income,
- the location and nature of the borrower's business,
- the demand for the product or service offered by the business,
- the financial strength of the business, and
- the ability of the business to continue generating and distributing sufficient income to enable the borrower to make the payments on the requested mortgage.
- We have several disputed accounts on our credit report. Do these have to be resolved before we can get a mortgage? Underwriting will want to know the status of the disputes. When an account is disputed the credit item is removed from the scoring model, thereby giving the borrower a higher score than would be if the item was included in the reporting. Documentation would need to be provided for each item and then reviewed.
Please feel free to contact me with any questions you might have. I look forward to working with you and your clients. Please remember, I am licensed in Virginia, North Carolina and Florida.
Jennifer Keenan, Sr Mortgage Consultant, NMLS# 101837
Tidewater Home Funding, 757-272-4199