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

Dated: 11/28/2017

Views: 46


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

Latest Blog Posts

Best Tax Deductible Home Improvements For Homeowners

Best Tax Deductible Home Improvements for Homeowners Before delving into tax-deductible home improvements, it’s important to understand that these tax deductions won’t be applied immediately.

Read More

Pros And Cons Of Adjustable Rate Mortgages

Pros and Cons of Adjustable Rate Mortgages When you are in the market for a new home, you may be faced with numerous options for financing your home. One of the choices you will have to make is

Read More

Should You Pay Discount Points When You Get Your Mortgage

Should You Pay Discount Points When You Get Your Mortgage? One of the challenges you will face when deciding how much money to put down on your new home is whether to put down a larger down payment

Read More

Whats Ahead For Mortgage Rates This Week April 16th 2018

What’s Ahead For Mortgage Rates This Week – April 16th, 2018 Last week’s economic reports included readings on inflation, the minutes of the most recent meeting of the Fed’s Federal Open

Read More