A required payoff means your loan approval requires that one or more existing debts be paid off or reduced before or at closing.
Examples may include:
Paying off a credit card
Paying off an installment loan
Reducing an outstanding balance
Satisfying another debt required by your loan approval
Lenders sometimes require a payoff because eliminating certain debts can improve your debt-to-income ratio or satisfy other underwriting requirements.
If a payoff is required, Padzilly includes the estimated amount in your Total Cash Needed so you understand the complete amount of funds that may be required to close your loan successfully.
Your loan officer can provide the exact debt being paid off and confirm the required amount.