Most mortgage lenders will ask about your student loan status, although a debt won’t automatically lead to a black mark against your application. Despite the obstacles, with hard work and patience you’ll still be able to reach your homeownership goals.
Residential People have years of experience working to connect people with property, and they revolutionised the way people search for properties. Here, they discuss how to get a mortgage while in student loan debt.
1. Review your details – set some time aside to review your credit score and other relevant financial information. You’ll have far fewer issues in qualifying for a mortgage if you’re prepared to meet with the lender.
2. Refinance your student loans – when lenders look at your debt-to-income ratio, they’re also looking at your monthly student loan payments. The most effective way to lower your monthly payments is through student loan refinancing.
3. Pay attention to your payments – lenders want to know that you’re a financially responsible borrower, and they’ll judge this by your payment history and credit score. To ensure on-time payments, set up autopay for all your accounts so the funds are directly debited each month.
4. Get pre-approved for a mortgage – don't find your home and THEN get a mortgage – this can lead to stress and disappointment. Instead, get pre-approved with a lender first so you know exactly what kind of home you can afford.
5. Careful consideration – finally, even if you’re capable of buying a home with student loan debt, you have to decide whether it’s the best decision for your financial situation. A number of factors will inform your final decision, and you should consider all of them before you seek out a lender.
MORE ON RESIDENTIAL PEOPLE
When Residential People were established in 2014, they wanted to simply connect people to property. With years of experience working in this industry prior to the business launching, they knew the importance of a service people could rely on, in which they could find a wide collection of the latest houses and flats available.
Residential People aimed to change the scene for a residential property. They quickly realised they could adapt and improve the way people searched for properties, as well as making it easier for estate and letting agents to connect with potential buyers and renters on the market. With a friendly team of administrative staff, plus expert account managers here to support businesses, Residential People have rapidly grown, listing thousands of residential properties all across the country from the top local, national and international estate agents.