Buying a home while paying off student loans
There are currently 44 million Americans who owe a total of $1.5 trillion in student loan debt according to the website Make Lemonade. However, some in Florida and throughout the country may doubt whether or not they can buy a home while carrying such debt. The good news is that student loan borrowers may be able to qualify for a home loan. This can be especially true for those who have a credit score of 750 or more.
That is considered to be an excellent score while anything under 600 is considered to be poor. Lenders also consider a borrower’s debt-to-income ratio when determining if a person qualifies for a mortgage and what interest rate that person will pay. To reduce this number, a potential borrower can either make more money or work on paying down his or her debts.
Resisting the urge to use credit cards to make payments and making debt payments on time are other easy ways to improve the odds of getting a mortgage while paying off student loans. Prior to finding a home, it may be worthwhile to get pre-approved for a mortgage. Doing so helps an individual know how much he or she will be able to afford, which can help to limit the number of homes a person makes offers on.
The first step to buying a home is generally making an offer to the seller. An individual may be able to make a stronger offer on a residential property if he or she has already been tentatively approved for a loan. After an offer is made, a buyer is often allowed to perform an inspection and ask for disclosures from the seller. An attorney may be helpful in obtaining such disclosure as part of the due diligence process.