Need advice - trying to get pre-approved but am in a strange situation

The best way to handle this situation is to be totally honest with your dealings with lenders. The fact that your wife is a co-signer does obligate her to the full payment amount which would be used in determining your debt ratio which is a qualifying guideline for all loans. This will reduce your approved amount for the new loan. There are still a few lenders that will take the co-signing into consideration and remove it from your debt payments list with proof of satisfactory payment of the loan by your inlaws and verified proof of them making the payments. This proof would be in the form of canceled checks or a full verification of mortgage from their lender if payments are made online. I would first check with your lender and determine how much you can be approved to borrow under your current circumstances. You may be surprised to find out that the amount is high enough to allow you to purchase that home.

It is true that your in laws mortgage debt with affect your debt ratios on your own purchase loan. I would suggest looking at getting pre-approved without having to do the refinance for your in laws first. It may be that you are approved for more than enough...even with their mortgage debt. The approval can be contingent on your wife being removed from her parents mortgage liability. In other words, you can still find out your max approval amount assuming that debt will eventually be removed. Moreover, you can find out if the debt even has to be removed. The loan officer would eventually find out about your wife co-signing because it will show up on the credit report. I have been a mortgage banker for 12 years and would be happy to explain more, answer any questions, and talk to you about the pre-approval process and the the pre-qual letter if you would like. Hope that helps. Lea Snyder, Summit Mortgage 503-577-3895. www.LeaHomeLoans.com.

Aloha, Both previous answers are accurate. Be totally upfront with your lender. Get qualified with your wife still on your in-laws loan, and with her off. If you can prove that her parents are making the payments, i.e., cancelled checks, then some lenders will not count that towards your debt. If I can be of any further assistance please call anytime.All the best to you,Daniel Nicolosi808.945.3000 x4

First, let me say being "pre-approved" and "pre-qualified" are two different things. There's no need for you to wait until the in-laws refinance before you can seek a pre-approval. Just let your loan officer know up front that your in-laws are in the process of refinancing their home to remove your wife from the obligation and you can get a pre-approval based on the contingency that your wife is no longer obligated for the debt. A pre-approval is based on the assumption that you are able to document the information you give to the lender in order to qualify for the loan. A pre-qualification is based on the fact that you have already given the lender the necessary documentation for final approval of the loan.So, no need to hold yourselves up in the search for your new home - good luck to you! If you have any questions, just give me a call (501) 280-3487.Debbi Lachowsky, NBA Mortgage

I agree with virtually everybody's answers. In this mortgage environment you want to be upfront & truthful. Most Lenders require an FBI fraud form that requires your signature. I can assure you honesty is the best policy! I have been in this industry for over 23+ yrs. If you require further assistance, I can be reached at nancyreleford@homeequitymtg.com or 615-867-3060.Good luck!

Good morning my dear brothers and sisters in Christ, I am Mr Woodson Heather, a reputable, legitimate and accredited money lender. I loan money to Christians and trust worthy people in need of financial assistance at 3% interest rate. Do you have a bad credit or are in need of money to pay bills? Let me take this medium to inform you that I assist beneficiary reliable as I'll be glad to offer you a loan from a minimum of $5000 and above.Please write with the below information. After the reply, you will be sent a loan application form to fill. (There are no credit check, 100% Guaranteed!) I hope you will allow me to be of service to you. Sincerely. Contact us via email: (woodsonloanagency@yahoo.com) with the Applicant Information below:Full Name;Country:Amount Needed;Monthly Income: