What kind of debt do lenders consider when issuing loans?

We consider debts that show up on your credit report such as car loans, personal loans, credit cards, mortgages etc. Utilities & insurance payments are not calculated into your debt ratio unless you're applying for a VA loan. Then utilites will be considered as well.

For a residential loan phone bills and car insurance would not be included, credit cards and car loans would be included.

Any debt where you "Borrowed" money... so your regular re accruing bills such as utility, phone, food, insurance won't be considered... any debt where you have borrowed funds must be disclosed whether it's on the credit report or not.. 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

For a residential mortgage, lenders consider recurring bills for services such as utilities, gasoline, groceries, auto insurance, etc to be part of your non-credit payments and is lumped in with grocery expenses, entertainment expenses, etc. If your Debt-to-Income ratio is 45%, then the above items are considered to be part of the 55% that is not-credit. The portion that makes up the 45% is your housing, any fixed payments, like for an auto loan or a student, Any revolving payments, like for credit cards, and for credit obligations that you have, even if they do not show up on the credit report. If you borrowed money from a family member and agreed to pay them $100 per month, then that would have to be disclosed on the application and would be included in the calculation. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950

Hi PParke_, thanks for the questions. The correct answer depends on what type of loan you're applying for (Residential, Commercial, etc) Residential Loans only take into consideration items reporting on your credit report such as credit card minimums, installment loans, student loans, car loans and mortgage loans PLUS the new full mortgage payment (including taxes, insurance, MI & assmnts if applicable). Commercial Loans and other non-conventional loans focus more on the property and do take other operating expenses into consideration. Hope that helps, if you have any further questions please feel free to message me directly. Thanks. Sam | www.silvercreekfinance.com

Anything that reports to your credit.

The primary source of evaluating your personal debt obligations is through your credit report. With that being said, if there is a reoccurring debt that shows up on your pay stub and/or your bank statements, proof of the debt obligation may also be required and factored into your debt-to-income ratios.