Thanks everyone for you responses. Here is some more quick info, and maybe that can help with my qualification purposes.
My originial GFE stated "Cash from Borrower $3XXX". It may be due to a $15,000 grant that I have from Wells Fargo's City Lift Program. Now that the concessions from the seller has changed, they are asking to see an additional $4500. I can not come up with that amount of money in a couple days, but maybe in 60. It's the holiday season and I am not going to be a burden on my family asking them to gift me money. I was originally working with a broker, but his companies were not on the list of approved lenders for the grant, so I decided to go with Wells. The seller has agreed to 3% concession for closing costs, with cost being 6% of sales price in Illinois. My refund for school was only to be used for stuff I needed for school, I had no intentions to include that in my mortgage stuff, but are they automatically including it? Can they give me time to save for the additional closing costs, and am I able to pull out so that I can continue to save? Originally I wasn't going to get a mortgage until 2013, but that CITY Lift grant only allows you 60 days to find one, and I didn't want to let that grant go (There isnt many assistance programs in Chicago.)
According to my LO, the grant can only be used to bring the purchase price down, but not to assist with down payment or closing costs. I went to a workshop after I received the grant, and there were people saying that they were using it for their closing costs, so I guess it depends on the Lender. My LO stated that FHA does not allow the grant to be used toward closing, and the only way I could use it toward closing costs would be to go conventional. I qualify credit score wise for conventional, but not in other ways according to LO. IDK I am confused.
About my LO..He was great in the beginning, but now that it is getting tough he's just beginning to tell me things I feel like should have been said in the beginning. He knew how much money I had saved because I told him the exact amount. I also told him that my family does not have much money, I'm sorry I don't have any wealthy family members and my mom and father is tight. If there was concern with reserves, I would have continued to save not embark on the mortgage journey if there was some uncertainty on their part with funds. Also, he should have told me about proper documentation of deposits here on out, he did not disclose that to me so I am losing faith with his integrity.