{5 Tips for Buying a Home When You Have Student Loans}

Dated: May 4 2020

Views: 60

Most college students require some kind of financing to complete their degree. Student loan debt is a serious commitment, one which can take up to 20 years to repay. But having a student loan does not mean you will be unable to buy a home, in fact lenders are prepared for this kind of debt and can help you find a loan program which suits your needs. Before you postpone homeownership, talk with a lender and plan for the purchase; then follow these 5 tips to make sure your search is successful.

1. Understand Your Budget – Shop for a home you can afford. First time homebuyers might not be able to buy the huge home with a pool. Be realistic about your monthly debt and be prepared to buy in your price range.

2. Reduce Recurring Debt – As you begin to plan for your home purchase, pay down credit card and auto loan debt. These additional drains on your credit and monthly paycheck and add thousands to your home purchasing power.

3. Lower Your Student Loan Payments – Consider ways to reduce the monthly cost of your student loans. Consolidation and refinancing are great ways to reduce the interest on loans and lower your monthly payments.

4. Pay On Time – This rule applies to all your debt, but demonstrating responsibility for your loans helps lenders see you as good borrowers and could lower your mortgage interest rate.

5. Save a Little Longer – A larger down payment will help reduce the monthly cost of the mortgage; if you can save for 20% down, you will also save in Private Mortgage Insurance which is added to all loans with a high Loan-toValue.

Having a student loan does not prevent you from buying and owning a home. Talk to a lender and learn about your unique situation and create a strategy for accomplishing your home ownership goal. 

Contact me to discuss!

Blog author image

Samanthia Ramsey Brunker

About Samanthia Ramsey Brunker- I have a Client-First Philosophy! I Love Real Estate! That is why I became an agent back in 2001. I enjoy helping Buyers and Sellers achieve their Dreams! When I am not....

Latest Blog Posts

Tips to keep your white kitchen clean and maintained!

Do you love modern White Kitchens? Tips to Clean and Maintain Your White CabinetsSleek, white kitchens are one of the most popular trends in interior design. Bright and cheery white tiles, sinks,

Read More

Selling your first home and need help? I am here for you!

Thinking of selling your first home? We can help you!There is a lot of attention paid to first-time homebuyers. Most real estate agents and lenders have some kind of guide to help first-time

Read More

We love listing homes in the winter! Here is why....

Advantages of Selling a Home This Winter:Home sellers and real estate agents often fear the winter months because it seems like a poor time to list. The truth is that winter can be a great time to

Read More

Protect your identity! Ways to help to this here!

Looking for a Mortgage? How to Protect Yourself from Identity TheftNothing is more stressful than shopping for a mortgage and realizing your credit score isn’t what you expected. Worse still

Read More