This is a YouTube video titled "🚨 Excluding Debts Saved a Family’s Pre-Approval 🚨" containing a single-speaker explanation from October 28, 2021, discussing how understanding mortgage rules about excluding certain installment loan payments helped increase a family's mortgage pre-approval limit, potentially changing their financial opportunity.
Maybe we had a client come to us from another lender. The other lender took a look so they didn't qualify for enough and sent them on their way. The client wanted us to put a second set of eyes on it. So while reviewing, I noticed they had about a $4,000 balance on their auto loan. The monthly payment was about $500 a month. There is a little loophole in the mortgage world where if there's 10 payments or less remaining on an installment loan like that, you can exclude that whole payment. So that opened up $500 a month and now could afford towards a mortgage took up from about $100,000 to $175,000 pre approval limit. So just knowing the rules and when to apply, it opened up possibly a life changing opportunity for that family studio.
