Relocation Loan and my mortgage app

[Soleil9]

Hey guys...

Looking at the price for closing costs and earnest money and realizing I may not have quite enough to cover everything, plus cost of moving to the new place.... So, can I gt a relocation loan for about $4000 or so to cover these costs? Are they considered student loan dept and not figured into my debt/income? It seems like it should since they are deferred for 36 mos.

Anyone know if this will affect my mortgage app negatively? I'm preapproved and have an offer on the table for a real nice place but now I'm worried about covering all the costs. HELP!

PS- I'm asking on behalf of my husband, who just graduted from med school, I'm only a lowly second year......

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[mshheaddoc]

Ok, if your mortgage company requires proof of funds for closing, most have "seasoning" requirements which means any big deposits that are out of the ordinary would have to be "sourced". Seasoning requirements are typically 30-90 days (depending on the bank) meaning that these deposits within that time period, if they are larger than your income, will have to have proof of where it came from.

If your lender is including your loans in the debt ratio, they might not allow you to "borrow" funds for closing, or they might pull your credit again prior to closing and see more credit pop up. I suggest that you ask your lender what your underwriting requirements are and for your bank statements, how many months seasoning you require. A way to get around this, if you can get a "gift" from your parents and then give them the proceeds of the loan. That way if your lender accepts gifts, they just need to write saying that its a gift and you don;t have to repay and you could just give them the proceeds of your loan that you take, (the residency relocation loan).

Just an idea, I hope this helps.

 

[Soleil9]

Thanks for the advice. After talking w/ my lender, he said taking any new loans now would negatively affect my app. So, my parents are going to float us some mone for closing costs. We may still take out the relocation loan, but not until after the mortgage is closed.

 

[mshheaddoc]

Good plan!