Under Contract, Pay off Private Student Loan?

[Anonymous]

I am curious if I should pay off a 4.6k private student loan during the closing process of a mortgage or wait until after. Before responding read everything!

My Lines of Credit:

3 Credit cards - 2 zeroed out and 1 actively used (below 35% usage)

2 Auto Loans - 1 is mine and paid early with an additional $40 a month (Payment owed $300.21). The Other I cosigned on and is perpetually late and has 4 returned payments ($241 a month payment owed)

4 Student Loans - 4.6k Private, 23k (consolidated Subsidized and Unsubsidized), 10k Subsidized, 3k Unsubsidized. All paid weekly increments on my own accord. Private loan has been given additional payments when able.

Medical Bills - All are paid off except one that I am on time paying each month.

As you can see above, the biggest problremI ahve is an Ex who has cause a ding on my credit scores because of the vehicle I cosigned on prior. When I started the Mortgage process I was good and then my scores dropped below acceptable range (584, 612, 594) because of her. She has finally made a payment that has stuck so far. I have 2 more times I will get an updated score before closing (March and April 6th).

Would eliminating a piece of debt that is reporting a $220 a month payment, help secure my Mortgage credit scores enough to close? Mind you my Fico 8 scores have jumped back up since she made a payment, but I am no fool and know that the different models yield different results.

Thank you for any assitance you can provide.

UPDATE: As of March 6th, my scores not only went back up but went higher than before. I have decided to wait until after I close on the house just in case.

[redE2move]

May I ask did you get a preapproval before hand and if so, what were your mortgage scores before the late payment?

[Anonymous]

"May I ask did you get a preapproval before hand and if so, what were your mortgage scores before the late payment?"

Of course. I am working with a mortgage broker so I got preapproved beforehand and the scores were 585, 622, and 663 January 6th. January 24th they dropped down to 584, 592, and 637. Febuary 6th they went to 584, 594, and 612.

The ex let the other car ride a few mnoths behind for a bit and I assume late january is when that caught up to my credit. 

[CreditInspired]

OP, IMHO, before you pay off the private student loan, please check with LO first. They really want to know everything so there are no surprises! The biggest problem I believe, as you have noted, are the ongoing late car payments (and those returned payments are a big red flag). They just keep dinging your credit. Also, are the payments up-to-date as of today? If no, I think that may be more important than paying off student loan, but again, ask LO first). Also, it honestly may be worth paying the ex's carnote (but not telling ex), so ex can continue making payments. That in itself should be worth piece of mine.

GL2U

[Anonymous]

The car payment is currently up to date (in fact she made another payment recently), which is why I feel I might have a window to lock this in. As for paying it? I am in litigation with her and currently want nothing to do with her, but if keeping the payments current for now secures my mortgage, than I can do it.