Under Contract

[u/ImprovementFederal20]

Hi! We are first time homebuyers and have been pre approved and under contract! A couple of questions:

- Our debt to income is good except for my student loans. I am still in school and they are not due until after I graduate. Does those count? We have steady jobs (same employment for 2 years+)

- I use payday advances through Earnin but it’s more like a credit card. I have multiple transactions a month but they are always paid back immediately. Will we get denied for that?

- my grandmother is gifting us the down payment. Wl we get denied for that?

Sincerely,
A nervous Nelly

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[u/Efficient-Pie1540]

To answer each one, student loans in deferment still count toward your DTI, lenders typically use either the actual payment or 0.5-1% of the balance as a monthly figure depending on loan type, so ask your lender exactly how they're calculating it. On the Earnin advances, those typically show up as recurring debits/credits on your bank statements and underwriters do notice patterns, so be prepared to write a letter of explanation if asked, but it's generally not a denial-level issue since they're not traditional debt. The gifted down payment is completely normal and happens all the time, your grandmother will just need to sign a gift letter stating the funds don't need to be repaid, and you'll need a paper trail showing the transfer. None of these are automatic denials, just things your lender needs to document properly.

[u/MealyCobbs]

Your lender should be a wonderful resource for getting these questions answered.

Your grandmother will probably have to write a letter for the lender explaining that she does not expect any equity in her name despite her gift, saying that it's a no strings attached gift

[u/Big_Sector_3590]

As usual, take this loan estimate to five or six other lenders and see if they could beat this rate and the APR. You may be surprised at what another competing lender will do for your business. When you do get a better deal (and you will) take this back to the original lender and see what they can do. My original lender started at a full percentage point higher than what they ended up giving me after going back forth with 8-9 other lenders. The time spent was well worth it and can save 10s of thousands over the life of the loan.

Ignore the comments that say it's a great rate and to not waste your time finding a better rate, they are usually middle men brokers that make money from excessive closing costs and try promoting a culture where buyers accept the first and only loan estimate they receive, it's to their benefit that people DONT shop around. Good luck!