The general perception is that you can’t get a loan when you’re already paying for one. Students who have taken a student loan for their education will be familiar with this notion. A student loan debt causes frustration, stress, and tension because once you’ve opted for it,
you think you’ll not get another one. Well, that’s not completely true! You can definitely dream of having your own house even with that debt.
Is it easy? No lying on this one, no. It’s not easy. Is it impossible? Not at all!
Just ask yourself- how careful have I been while taking a loan? According to a study, over 69% of students borrow student loans for which they earn from not only one job but go to multiple jobs just to pay off the debts. All your earnings get reserved for your debts and thinking of having another loan would never be an option for you.
But hey! You need not worry! Here are some mind-blowing ways that help you make your dream of owning a house come true-
- Maintain the credit score
- Limit your DTI ratio
- Be prepared and then invest
- Pre-approved is safe
- Spot a down-payment
Maintain the credit score
The only thing the lenders can trust on you is your credit score. The better your ability to pay off your debts the more trustworthy you become for a bank who will give you the loan. It’s just about being in the fluent financial routine and continuing the same.
There’s nothing wrong with buying things on credit. In fact, buying things on credit will help you to build a strong credit score which can be considered by the bank as your capability to get the loan.
Limit your DTI ratio
A circumstance may arrive when you have to show your DTI ratio to the lenders. DTI (Debt-to-income) ratio is the ratio of your income versus your monthly debts.
By limiting your DTI ratio, you can prove your ability to handle different credits that clash with your income. And if you really want to buy a house while you already paying off the student loan, then you will have to limit your debt payments and increase your income. The more you reduce the debts the lesser is a load of paying them back.
Be prepared and then invest
Just like you can only have one candy at a time, you can handle one or a maximum of two things at the same time. When you feel buying the house is worth the money, only then go for it and invest. Your priority comes first! You then refrain from spending money on unnecessary things. Instead, just invest it on what you actually want.
Pre-approved is safe
Pre-approving yourself is the safest thing that you can do before buying any mortgage. Before buying a house, get yourself approved by the lenders.
Now, the question pops up that why even approve the income before buying a house? It builds a lender’s trust that you can pay off the money for buying a house. Just show your financial history which includes the assets, the debts, the payments, and income proof.
It is just for the lender’s trust that if you can pay off the debts timely and the bank has trusted you on this, then you can pay off the home loan too.
It’s not that difficult, right?
Just make the right moves and you’ll stand a chance to own a house, even with a student loan to pay off. Want to approach the best realtor to help you get a house? I can help!
Connect with me and let’s see how we can get you a house, even when you have a student loan debt!