Initial Mortgage UW Approval but now son needs a loan for school!!!!

[thross8512]

Hi everyone-

I have a situation that I hope someone can help with.  I received an email today that my loan has been approved but with conditions.  I don't yet know what those conditions are as the email I received was from the LO and not the processor.  He said I should receive that email Monday.  My question is my son is an entering Freshmen and we were made aware yesterday that the student loans he needs is short and that I could take a loan to get the rest. The loan amout would be arounf 4k.  My DTI right now is very low so adding this additional expense would not hurt that ratio. The question is what is the likelihood that the mortgage co would pull my credit again before closing?  My close date is set for the 29th of August.  Help!!! 

[Anonymous]

Since 2012 I have been reading up on mortgage loans and contacted many lenders as well as reading many boards and from that it sounds very likely they'll pull it one more time before you close.

You could get the particulars on a student loan and what the payments on that would be and contact your loan officer and give them those details to find out exactly how that would affect you before they run your credit one more time.

How far out from closing are you?

[thross8512]

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@Anonymous wrote:

Since 2012 I have been reading up on mortgage loans and contacted many lenders as well as reading many boards and from that it sounds very likely they'll pull it one more time before you close.

You could get the particulars on a student loan and what the payments on that would be and contact your loan officer and give them those details to find out exactly how that would affect you before they run your credit one more time.

How far out from closing are you?

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August 29

[DallasLoanGuy]

tell the loan officer now.....  so it can be addressed now and not right before closing

[Anonymous]

School financial aid is based on total costs for the entire school year. They generally include tuition, books, room, board etc. The cost calculations account for the entire year and then disburse funds once to twice a semester to keep things moving. You do not need to prepay for the entire year at the start of the year. So, have your son take out what he can and get by until your home closes. He will not run out of available aid for a while. Then you can get your loan processed after the home loan closes. The financial aid office of the school can process and change financial aid packages throughout the year, so you have time to get things done in the order needed. I work at a university and see this stuff all the time.

[thross8512]

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@Anonymous wrote:

School financial aid is based on total costs for the entire school year. They generally include tuition, books, room, board etc. The cost calculations account for the entire year and then disburse funds once to twice a semester to keep things moving. You do not need to prepay for the entire year at the start of the year. So, have your son take out what he can and get by until your home closes. He will not run out of available aid for a while. Then you can get your loan processed after the home loan closes. The financial aid office of the school can process and change financial aid packages throughout the year, so you have time to get things done in the order needed. I work at a university and see this stuff all the time.

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Thanks! So if I'm clear on what you are saying is that I can ask them if they would use the available funds that he has right now to cover this semester they would likely do that?

[Anonymous]

Hi there- I just typed out a long and detailed explanation of the financial aid process, but then my browser crashed and I lost it. So, here is the short version.:

Yes, let the school know that you can help your son in the spring, but not now. They can then shift costs and aid around to accommodate it. Now, there are exceptions- if your son is going to a private or out of state school (so tuition is really expensive) and the loans are JUST for one semester of tuition, then this will not work (and you should really re-think the private/out of state school choice as they are not worth is except  for under very rare circumstances)

In all other normal cases, his federal Stafford loans and other financial aid will be enough to get him through to the spring. If you want a more detailed discussion, send me a private message (if this system allows it..I am new here) and I can give you more info. Specifically, the school he plans to attend and how much financial aid he was offered without counting your 4K is what I would need to know to give you better advice. I spent 6 years as a financial aid adviser and am now faculty as a state university. Happy to share info when I can.