Looking to refi, currently dealing with a small lawsuit, will it affect my chances of qualifying?

one of the disclosures on a mortgage application is a question relating to this exact scenario.. You are obligated to let the lender know, and they will want the details.. if your being sued for $6000, and you have an additional $6000 above and beyond what is necessary to close your loan, you should be ok.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

This question is for your benefit. If the case resulted in a judgment against you as a debtor before your loan closing, it could slow down or cancel your transaction. If you do disclose it, the lender may require you to put $6,000.00 in a reserve account with the closing agent, as a protection against last minute surprises.

Good answers previously, your lender will want some pretty strong documentation to support your potential obligation. If the amount being sought from you is $6000 and you do not have those funds available they will want to know how you would satisfy that obligation if the decision goes against you. If you would borrow the funds, they would want to document how much the payment would be to make sure you still qualify. The details make a difference, lenders always have to plan for "what if"

The question "Are you party to a lawsuit" is on the application. Lenders will want to know if you have lawsuit exposure, and if you do, at what level. In your case, will $6,000 make or break your finances.

Yes is does - and it makes sense. If you have a potential $6,000 liability, it will be taken into consideration in the qualification process. Disclose with your Lender as early as possible so he/she can help you decide better where you are qualified. Good Luck.