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How to Get a Mortgage While in Student Loan Debt

It’s no secret that homeownership amongst millennials is dwindling, but did you know that buying a home can often save you thousands when compared to renting via the private sector?

If you’d like to get on the property ladder, but you’re worried about your student debts, then read on as Residential People has some vital advice on how you can buck the trend, get a mortgage, and own your first home.

While most mortgage lenders will ask about your student loan status, it’s important to remember that this debt won’t automatically lead to a black mark against your application. 

As long as you follow the tips below, with hard work and patience, you’ll still be able to reach your homeownership goals.

    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.
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    3. 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.
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    5. 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.
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    7. 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.
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    9. 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 ultimately you should consider all of them before you seek out a lender.

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