I am trying to buy a house and expect to close in 45 days. My money is tight due to down payment, closing costs, moving costs, etc. I am thinking of getting a forbearance on my student loan so I save some money but I don't want to do it if it will lessen my credit score and jeopardize my mortgage approval.
2007-07-10 09:04:06 · 10 answers · asked by dsedarisfan 2 in Business & Finance ➔ Personal Finance
Forebearance does not appear on you credit score
2007-07-10 09:06:17 · answer #1 · answered by Pengy 7 · 0⤊ 0⤋
Probably not, however - beware
If you can't afford to pay off the student loans, why on earth do you want to climb deeper into debt and take out a mortgage? I know this is not what you want to hear, but I have to give you an honest answer.
A forbearance is a only a temporary postponement of principal payments, if you are willing but financially unable to make the required loan payments. Interest continues to accrue during the forbearance period, and must be paid at least annually. For many of these, the period is only a few years, and then payments are due (principle & interest).
These payments and a mortgage could financially strap you - leading to a diet of additional consumer debt (credit cards).
You will be best served in the long run if you focus on paying your student loans off first. You should be able to wipe them out in just a few years if you are not also paying a mortgage. Then you will be able to buy a house and not be drowning in debt.
2007-07-15 15:41:26 · answer #2 · answered by Maggie Jeans 3 · 1⤊ 0⤋
Student loans are not considered in the same class as other loans and debt when you apply for future loans. As long as you handle it responsibly and pay on time, you should be fine. The balance owing will be taken into consideration, as will your payments, if you are considered for a mortgage, but you are making a decent salary, so you should be okay. Just make sure to continue paying them off on schedule. Also, until you have other loans to pay off, you might consider kicking a little extra into your payments on student loan debt, as that will help you pay them off earlier.
2016-05-18 21:58:05 · answer #3 · answered by ? 3 · 0⤊ 0⤋
The forebearance won't make any difference. The overall debt left on the student loans will.
That is to say, neither will negatively affect your credit (as long as you make payments on time when you're supposed to be making payments) but the overall debt will likely affect the amount you're qualified to borrow even if you're not required to make payments right now.
2007-07-10 09:13:18 · answer #4 · answered by J P 4 · 2⤊ 0⤋
Sounds good at first, but you may talk about it to a loan officer, in any bank other than your bank.
Good luck !
2007-07-11 08:07:07 · answer #5 · answered by Jimmy John 3 · 0⤊ 0⤋
i have put my loans in forbearance before, and i have not noticed a change in my creidt score. i never though of it, actually. what a great question :)
2007-07-10 09:10:14 · answer #6 · answered by magnolia 3 · 0⤊ 0⤋
No, this should not effect your credit score.
2007-07-10 09:07:18 · answer #7 · answered by Don 5 · 1⤊ 0⤋
Don't know get an advisor
2007-07-10 09:07:28 · answer #8 · answered by eightieschick37 2 · 0⤊ 3⤋
It probably will
2007-07-10 09:07:20 · answer #9 · answered by Gengis 6 · 0⤊ 2⤋
NO
2007-07-14 08:39:16 · answer #10 · answered by Deebari T 2 · 0⤊ 0⤋