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Guest

Hi, every one, I have a problem, Me and my son opened a mortgage and we got approved "conditionally", They required me to show at 1500 in my recent bank statement and do appraisal and title work, and show proof of Loan star paid in full.

The problem is the loan start, it is a student Stafford Loan my son pulled out and it is subsidized, which means that he has to pay the loan after he graduates or a 6 month period of "grace", must I pay off all the debt? He is still in school.

And one more thing, can anyone give me a range or estimate of how much the closing cost is? (the most and least)

Thank you, I hope you guys can help me

Guest

Hi,

Why is your lender asking you to clear off this loan? Is it affecting your debt-to-income ratio in some way?

The closing cost is generally 3 - 5% of your loan amount.

larry · Joined: 27 Jun 2007 Posts: 3322 474.67 Dollars($)

Hi Guest,

Now if you can afford to pay off the debt, you can surely do it. You have asked about the range of closing cost. It actually varies state to state and time to time. Generally, it is 2 to 7 percent of your lone amount. You can take a look at http://www.mortgagefit.com/state-fees.html

Thanks,
Larry

Guest

If you can, try to get a letter from the student loan company indicating that the loan payments are currently deferred and for how long. That often will be sufficient to exclude the debt from being paid off. As far as closing costs, the do generally vary widely from state to state. The chart Larry referenced should help you greatly.

Michelle

michelle · Posted: Wed Oct 17, 2007 2:27 am Post subject:

If you can, try to get a letter from the student loan company indicating that the loan payments are currently deferred and for how long. That often will be sufficient to exclude the debt from being paid off. As far as closing costs, the do generally vary widely from state to state. The chart Larry referenced should help you greatly.

Michelle

Guest

Thanks everyone I will try to get the letter

evolovik26 · Posted: Wed Oct 17, 2007 6:21 am Post subject:

As far as closing costs it sorta depends on the loan ammount and the loan itself but if it is more then 3% of the loan ammount find out why (there are discount points, escrow accounts, taxes ect that can vary costs greatly)
As far as the student loan get a letter saying it is defered from the company you got the loan through (there might be an issue if your son is about to finish school and the loan will come due within the next 5-10 months) I'd also check up on the lender or more importantly the loan officer that does not know about student loans defferment or cant explain to you why you need to payoff a debt.
Good Luck! If you have more questions post here.

Guest

The loan amount is $310,000, I have a question if at the closing the closing cost was a little over what u have on hand, what happens? will I lose my earnest money too?

Samantha · Posted: Thu Oct 18, 2007 5:41 am Post subject: RE: closing cost higher

Hi Name,

If the closing cost is higher than what you have at hand, it doesn't mean that you cannot get a refund of the earnest deposit. The refund will be paid by the seller and the closing costs are payable to the lender.

It is advisable that you keep a certain amount of cash at hand while closing so that it doesn't fall short. By the way, the Good Faith Estimate provided by the lender will help you to get an estimate of what the costs are likely to be when you close.

Hope this helps...

God bless you.

Samantha

evolovik26 · Posted: Thu Oct 18, 2007 6:50 am Post subject:

on a 310k loan you should expect around 7k+ closing costs but you can certainly make arrangements not to pay all of them out of pocket. You can negotiate with the seller of the property to pay part or even all of your closing costs. Typically 3-6% seller paid closing costs are allowed to be negotiated into the deal. Your Realtor can be negotiated with to pay part of your closing costs and even your loan officer can pitch in. Obviously no one likes working for free but anyone in the bisiness will sacrifice $500-1000 to make a deal work. And your seller is definately someone to negotiate with first. This is a legal way to offset the strain of closing costs.
One thing that you should understand though is the fact that most lenders prefer you to have $$ on hand when alll is said and done. About 2 month worth of your mortgage payments is the minnimum most banks want to see. No one wants you to have trouble making your first payment.

gmakerley1 · Posted: Mon Nov 05, 2007 1:53 pm Post subject: mortgage problem

What kind of mortgage company are you working with that would not provide you with information concerning closing costs? You clearly should never have to go on a blog and ask that question. Normally, student loans that are deferred for 12 months can be eliminated from consideration for debt service. You indicated you thought the deferment period was 6 months, which would not be in your favor. Someone asked why it was that they required the student loan to be paid in full - you did not respond to that question, which was a good one.

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