Graduating With Student Loan Debt And Worried About Your Mortgage Prospects Youre Not Alone

Dated: 11/28/2017

Views: 96

Graduating With Student Loan Debt and Worried About Your Mortgage Prospects? You’re Not Alone

Graduating With Student Loan Debt and Worried About Your Mortgage Prospects? You're Not AloneDid you recently graduate from college or university? If so, you may still be dealing with a financial hangover in the form of student loan debt. The vast majority of today’s students have to borrow to invest in their education, which can affect financial plans once school is finished. In today’s post, we will explore buying a home with a mortgage when still dealing with outstanding student loan debt.

Your Situation Is Common, But Unique To You

First, try to keep in mind that you are not alone. Many former students are moving on with life, working hard to build a career and a life while juggling past student loans. However, your situation is unique, and thus, you need to plan it that way. For example, are you single or married? Are you in a stable career or are you potentially shifting jobs? Do you have children or are you planning to in the near future? Your financial needs are unique and need to be prepared and budgeted accordingly.

Understand Your DTI Ratio

Have you heard of the debt-to-income or ‘DTI’ ratio? When you take out a mortgage to buy a home, this ratio is one factor in determining how much you can borrow. In essence, it is a ratio of your monthly debt payments versus your monthly income. As you are paying off student loan debt, that will increase your DTI ratio. Adding a mortgage, car or other monthly payments on here will as well. You will want to ensure that you maintain a healthy debt-to-income ratio or it can be challenging to stay solvent.

Balancing Your Mortgage With Your Other Loans

You may have heard this saying: “life happens.” It is rare that anyone can spend years with everything going according to plan. If you run into a temporary health or job-related issue, you may need to do some juggling to keep your mortgage and other payments fully managed. For this reason, it is worth trying to save at least a few months of your monthly expenses in a ‘rainy day’ fund. Just in case of an emergency.

Challenging, But Not Impossible

Balancing a monthly mortgage payment with student loan repayment can be challenging, but it’s not impossible. If you would like to learn more about mortgage products that are perfect for recent graduates, contact us today. Our professional team is happy to share how we have helped others with student loans realize their dream of homeownership.

For More Info Visit; http://www.bondstreetmortgage.com

Blog author image

Jessica Rojas

Jessica Rojas is an extremely dedicated and committed real estate agent who has been working in the Real Estate field since 1997. She became a licensed real estate agent in 2009 as a sales associate ....

Want to Advertise on this Site?

Latest Blog Posts

How Much Does Curb Appeal Increase Your Homes Value

Your home’s exterior plays an important role in grabbing buyer’s attention and, ultimately, selling your property; like the old saying goes, “you only get to make a first impression once.”

Read More

3 MustDos Before Listing Your House For Sale

Before you list your home for sale, it’s time to do a little work around the house – to prepare and make sure your home is seen in the best possible light. These “must-do” items are about

Read More

5 Questions Buyers Have During The Coronavirus Outbreak Answered

Everyone is being affected in some manner by the outbreak of Covid-19 coronavirus. During this time, buyers will have more questions than normal about the home buying process and their ability to

Read More

Go To Favorites How Buyers Sellers Can Prepare For An Early Start To The Spring Market

Is February the new April? When it comes to the real estate market, experts say yes.Regardless of whether that famous groundhog sees his shadow, a recent article on CNBC suggests spring

Read More