I'm going to start going to olympia college this week. and They want me to take out a student loan, as well as a personal loan through sallie mae. The student loan I know probably wont bother my purchase. But what about the personal loan? Its for about $900. I dont want anything bothering my purchase of this townhome. Would it change my debt to income ratio? Should I wait until after i purchase it?
2006-09-27 03:34:25 · 4 answers · asked by mocha_misses_18 1 in Business & Finance ➔ Credit
If you have already started the paperwork on your home, then it shouldn't affect it, but they usually tell you not to apply for any credit until you've finalized the paperwork or at least thats what they told me. It can affect your credit immediately actually because anytime someone runs your credit report, it drops your rating down a couple points each time. It will change your debt to income ratio as well. I would wait until you've finalized your home purchase just to be on the safe side.
2006-09-27 03:45:48 · answer #1 · answered by Sandi A 4 · 0⤊ 0⤋
Any new debt will impact your debt to income ratio. Not disclosing new debt to your mortgage lender constitutes loan fraud. In many cases, the lender will pull a final update on the credit report prior to closing. Even though the new debt may not yet be reported, the inquiry they made to your credit will be and you will be required to explain it which means you will have to tell them about the new debt or perpetrate a fraud.
The student loan will also have an impact, even if the payments are deferred they must be considered. Fortunately, student loan payments are small enough that they don't usually have a negative effect. Depending on the rate and term of the personal loan, it may not affect your qualifying either.
I would recommend you have a conversation with your loan officer and get it figured out. Worst case, you wait to get the school financing until after your purchase has closed.
2006-09-27 10:50:41 · answer #2 · answered by mazziatplay 5 · 0⤊ 0⤋
If you are already in the process of the loan, i.e. credit pulled and close to closing, then most likely not. It usually take a 3-4 weeks for a new loan to hit your credit report. On occasion, the lender may pull another credit report just before closing the loan, but odds are highly in your favor.
2006-09-27 10:39:02 · answer #3 · answered by KQ 2 · 0⤊ 0⤋
Student loans have can lower your credit score quite a bit. I guess they figure if you are a student, you don't have a regular income.
2006-09-27 11:28:49 · answer #4 · answered by WJVV 4 · 0⤊ 0⤋