Increasing Qualification Amount

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  • #72749
    cjaydreaming
    Participant

    I decreased my DTI which allowed me to increase the potential affordability. Prior to that my Payment Shock was lower. I was qualified based on the payment shock I had been saving prior to decreasing my DTI. Do I have to start the 6 months savings all over again to get my affordability increased?

    #72750
    Nelsont
    Member

    Depends on how much you were saving to begin with. Short answer is yes. Decreasing your debt does not prove you can afford a higher monthly mortgage payment if you aren’t saving the difference.

    #72751
    cjaydreaming
    Participant

    So I was already saving more than the payment shock I was given in anticipation of that DTI being lowered. But when I got my affordability form it didn’t indicate a higher payment shock with the lower DTI. When I attended the ATD event the counselor stated that she would request it based on the amount I was actually saving vs what I was told to save based on my higher DTI.

    I should have said I was qualified based on the payment shock I was told to save not what I was actually saving, which is higher. My qualification still shows the lower amount.

    For example my monthly Gross is 5600 and my monthly debt payment is 500 but my monthly payment is 1200.

    My PS is 700 but I was saving 1200. My new PS should probably be 1300. So now I have to start the process over saving 1300 since I paid off the debt to qualify for a higher amount. I’m just trying to figure out if I should even bother looking at anything or just waiting for 6 more months.

    #72753
    cjaydreaming
    Participant

    My underwriter helped me!

    Thanks!

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