Cash out loans are changing slightly – and I want you to know about these changes.
I’m seeing this change with more and more wholesale lending sources.
Until recently you could pay off bills at closing and we didn’t have to count these bills against your debt to income ratio.
…This could be the difference between an approval or denial on a cash out loan.
Here are the changes I’m seeing…
Now if you are paying debt off on a cash-out loan, then the revolving debt must be closed and we must have an updated line item showing it is closed on the credit report.
If the account is not closed, then you must count the revolving debt in the ratio even though it is being paid off.
Two years ago I really thought we would start getting some loosening in these guidelines by now, but it seems they are just getting tighter.
Thank you for reading my email – and have a great day!
Brett