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Consolidate student loans at time of mortgage application?

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Consolidate student loans at time of mortgage application?

Hi everyone. I have been on the site for a while reading and learning. I spoke with loan officer yesterday. He suggested I consolidate my 4 student loans into one new account, and they will show closed. One late from nelnet showing on 3 accounts for August 2017.
These are some of my older accounts on my report. I am in a extended graduated payment plan already so in a good place as far as payment for DTI ratio for mortgage.
Just wondering if this is the best option right now. I dont want my score to drop. Middle mortgage score is 605
Please any help is greatly appreciated.
2 REPLIES 2
Member

Re: Consolidate student loans at time of mortgage application?

I would get a second opinion...even if the account is marked 'closed', the late payment history will still affect your score for seven years from the occurence. Furthermore, closing a tradeline...even for a student loan, will affect you AAoA...I dont think this sounds like a wise idea; but again, get a second opinion, or maybe someone else can chime in on here.

Message 2 of 3

Re: Consolidate student loans at time of mortgage application?

Yes I believe I will. From everything I've learned on here it doesn't sound like good idea. Thank you.
Message 3 of 3
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