Financial Aid refund questions

[newmomnewme]

In a few days, I will receive a financial aid refund. I planned to use the refund money to pay off two credit card balances. Will this pose a problem for underwriters when they see the large deposit on my bank statements? I overspent during the christmas holiday and can't take the score hit letting the high cc balances report.  

Should I tell my broker what I plan to do? Will this kill my deal??

[BrianB_The_Loan_Professor]

You should be fine - be prepared to explain and docuent where the funds came from

Brian

[newmomnewme]

Thanks Brian. I was worried about the score drop if i didn't pay it....worried about the additional school loan...worrying about everything. 

[OaimeeO]

Make sure you make a copy of the check before cashing it or save the stub.  Have a copy of your schools statement showing the exact amount being refunded to you so there is a paper trail.  Also, have a copy of the bank statement showing the same amount deposited into your bank account.  I did not know this ahead of time and had to jump through hoops to get my school to send me a statement showing the refund since we were into the next sememster by the time I learned of a 'paper trail'!! But it was no problem with the mortgage app in the end.

[newmomnewme]

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@OaimeeO wrote:

Make sure you make a copy of the check before cashing it or save the stub.  Have a copy of your schools statement showing the exact amount being refunded to you so there is a paper trail.  Also, have a copy of the bank statement showing the same amount deposited into your bank account.  I did not know this ahead of time and had to jump through hoops to get my school to send me a statement showing the refund since we were into the next sememster by the time I learned of a 'paper trail'!! But it was no problem with the mortgage app in the end.

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Thank you so much! I am on it.