Quote from @Vanessa Ng:
Hi Colin,
In case you're still running into DTI issues. There's several things you can do to try to bring down your DTI:
1. Pay off any debt to $0 balance at or before closing --- get with the loan officer to see which ones would be most beneficial to pay off.
2. Opt for upfront PMI , this will eliminate the monthly PMI, which will decrease your DTI. The loan officer will be able to tell you how much the upfront PMI will cost.
3. if you have student loans, find out if the loan officer has you on Fannie or Freddie program. Freddie allows for .5% vs 1% balance on the student loans. $0 payment is allowed as well, as long as you are able to provide documentation evidencing $0
4. Add a co borrower , it can be non occupying
5. do you have any additional income that you receive monthly? if you have a part time job and have a 2 year history of working both jobs simultaneously , you can include that income.
Good luck! It's probably a good idea to lock your rate in. Some lenders to offer extended rate locks.
Yep! I do have additional income! The problem is that the exact same job won't be travelling me with me even though I plan to do the same thing once I am settled in the new house. We have been given several options about rate locks. This is the one that I am considering:
"We can do a 60 day lock at 6.0% (puts the P&I $2143) that would expire 7/1/2022, and we can pay to extend it for an additional 30 days, getting us to 8/1/2022 at the costs .5 of a point, which is .5% of the loan amount (assuming 5% down) that would have our loan amount at $357,459 which would be $1787 additional due at closing. If for some reason the builder is NOT finished by August 1st, we would have to pay another .25 points ($893) to extend another 15 days."
The extended lock options cost additional points, but we feel pretty confident that the construction will be done before 8/1 and most likely in July. We aren't 100% certain because of the supply chain concerns.
