Whether you’re buying a home or refinancing your current mortgage, it’s important to tell your loan officer about all of your debts and any new credit you obtain during the loan process.
What Is Non-Disclosed Debt?
Non-disclosed debt is any financial obligation that isn’t included on your mortgage application or that is opened after you’ve applied without informing your lender.
Examples include:
- New credit cards
- Auto loans
- Personal loans
- Buy Now, Pay Later accounts
- Furniture or appliance financing
- Co-signed loans
- Home improvement financing
Why Does It Matter?
Your mortgage approval is based on your complete financial picture. Even one new monthly payment can change your:
- Debt-to-income ratio (DTI)
- Loan eligibility
- Loan amount
- Approval status
In some cases, a new debt may have little impact. In others, it can delay your closing or require your loan to be re-evaluated.
Will My Lender Find Out?
Very often, yes.
Many lenders verify your credit and financial information again before closing. If new debt appears, we’ll need to review it before your loan can move forward.
What Should You Do?
If you’re thinking about financing furniture, buying a vehicle, opening a new credit card, or taking out any type of loan while your mortgage is in process, call your loan officer first.
A five-minute conversation today could save you weeks of frustration later.
The Bottom Line
Whether you’re purchasing a home or refinancing, communication is key. My job isn’t to criticize your financial decisions—it’s to help you close your loan successfully. The sooner I know about any financial changes, the more options we usually have to keep your loan on track.