Urgent question - College bound student need co-signer before closing (mortgage broker, credit report)

[blackandproud]

I have a urgent question.

I have my mortgage commitment/approval conditional on the sellers cleaning up the asbestos in the home. Once this is cleared, we will then get a closing date. Here's my drama.

My daughter has a balance left for the 2009/2010 school year and need a co-signer. I'm the only credit worthy parent that could do this. Will the lender pull my credit report again before closing? I'm so afraid that if I co-sign (eventhough the loan will be defered), this will have a impact on closing the mortgage.

I should add, that i've done ALL of the loan paperwork and the mortgage broker already pulled my credit report.

[icibiu]

They will definitely be pulling your credit again before you close

[SweepTheLeg]

I think it may be best to discuss this with your mortgage person, as they know the ins and outs of what's going on and how this will affect the mortgage.

[njkate]

Originally Posted by SweepTheLeg

I think it may be best to discuss this with your mortgage person, as they know the ins and outs of what's going on and how this will affect the mortgage.

Yes I agree, no sense second guessing go right to the source
and good luck

[armx]

At this late stage, I would refrain from giving any reason to the lender/investor to feel doubtful. Nobody (even the Lending Institute) knows when the investor would ask the lender to pull credit or check your bank acct. activity. prior to closing especially since the asbestos removal is going to take some time.

It is possible - not necessarily probable - If the Bank can be asked to delay the reporting of the cosigning or the lag time between the signing of the papers, actual approval of the loan (and therefore the reporting to the credit agencies) is going to be long then that may be something worth investigating in conjunction with a definite date for asbestos removal and OP's closing.

[blackandproud]

Originally Posted by armx

At this late stage, I would refrain from giving any reason to the lender/investor to feel doubtful. Nobody (even the Lending Institute) knows when the investor would ask the lender to pull credit or check your bank acct. activity. prior to closing especially since the asbestos removal is going to take some time.

It is possible - not necessarily probable - If the Bank can be asked to delay the reporting of the cosigning or the lag time between the signing of the papers, actual approval of the loan (and therefore the reporting to the credit agencies) is going to be long then that may be something worth investigating in conjunction with a definite date for asbestos removal and OP's closing.

The asbestos removal is occuring this week. So after the mortgage company receives the report, we will then receive a closing date. My debt ratio currently is 25%, i agree i don't want to give the bank any excuse, but then again, i don't want my daughter to have to sit out a semester. This is a very tough one.

[nemmert]

Originally Posted by blackandproud

The asbestos removal is occuring this week. So after the mortgage company receives the report, we will then receive a closing date. My debt ratio currently is 25%, i agree i don't want to give the bank any excuse, but then again, i don't want my daughter to have to sit out a semester. This is a very tough one.

They don't offer any sort of deferred payment or payment plan options that you could use for a month or two until after closing? In addition to talking to your mortgage broker, I'd also contact the school. I'd like to think most schools are reasonable.

[luckyshoes]

I would contact the school too and see if they can help you somehow.

[armx]

At 25% DTI you should be Ok on the ratios but funny thing about the investors (therefore underwriters) is that they don't like any changes " in the picture (of your financial position)" they already know to be true, before the closing time.

Enquiring about the timing regarding reporting to the credit companies may still be an exercise worth engaging in, in addition to talking to the loan officer ... but it all boils down to the investor - really.

Good luck to you.

[BobKovacs]

Hard to say. Back a few years ago, they wouldn't re-run your credit if the file was less than a few months old, so you'd be fine. Nowadays, that's not always the case.

On the student loan side, the loan itself probably wouldn't hit your credit report for a while, so it wouldn't change your debt ratio. The credit inquiry from the student loan company would show on a re-run credit report though, and that would possibly raise a red flag or at least a question from the mortgage company.