Many people starting their lives post-college suffer from high student loan debts, and the idea of chipping away at your student loans while also making other adult investments can seem daunting. After all, how can you focus on things like retirement savings and your emergency fund when you’re trying to pay off your loans quickly? But for those who are looking to buy a house, having student loan debt can make the process a little harder.
One of the critical pieces of buying a house is making sure that your credit score and credit history paint a positive picture of your behavior. If you want to buy a house but you’ve never made an on-time payment to your credit card or your student loans, then how can you expect a creditor to find you reliable enough to pay a mortgage?
Just because you have loans like the majority of Americans doesn’t mean that you can’t make steps toward owning your own home. One way to see how much you can afford to put toward a home is to get pre-approved for a mortgage, rather than searching for homes that you think are in your budget. Getting pre-approved means an expert will take a look at your existing loans as well as your assets and debt-to-income ratio to understand what’s possible for you.
It’s very rare that you’d be completely denied the ability to buy a home just because you have student debt, but it’s important to have a plan in place to tackle your loans and show creditors that you can also handle a mortgage along the way.
Curious about how to make steps toward owning your own home even with student loan debt? Contact Cain and Daniels today for more information.