Many Americans shoulder huge amounts of student loan debt. As recent college graduates venture into the housing market, some are shocked that their student loans affect buying a home.
If you’re looking for a home mortgage in Newton PA, be aware that student loans affect buying a home in 3 significant ways.
A hefty down payment is a smart way to start the home buying process. Large monthly student loan payments, however, can make socking away savings challenging.
What to do? If you’re planning to buy a house, cut back on unnecessary expenditures now. Eat at home more often, cut your cable and cell packages, and cancel anything else you can live without. Stash all your savings in your down payment fund.
Home buyers living in Newtown PA with high credit scores and no student loans have their pick of attractive mortgage loans. Carrying monstrous student loan debt might change that. Lenders look at your debt-to-income ratio, which takes all your monthly debt payments and divides it by your monthly income. The higher it is, the fewer mortgage loan options you may enjoy.
What to do? Pay your debt down as much as possible. Pay off credit cards and DON’T accumulate any new debt.
While you might yearn for a big house, your student loans may put a clinker in getting one. If you’re paying several hundred dollars a month in loans, a large monthly mortgage payment may be impossible.
What to do? Choose a smaller house or look in neighborhoods that are less expensive. Once you wipe our your student loans, you can always move to a new, larger home.
Student loans affect buying a home for certain, but they aren’t a complete roadblock to home ownership. With some good budgeting and advance planning, you can still become a home owner even with large student loan debt.
Patrick Mallon
Federated Lending has great customer…
Federated Lending has great customer service, a very knowledgeable staff, and made re-financing an effortless experience.
Elaine Punchello
I've trusted Federated Lending multiple…
I've trusted Federated Lending multiple times for my home mortgages. They make what can be a difficult process easy to get through. I've never had a delay in a settlement because of my mortgage, which is a frequent issue with other lenders. I'll continue to use them and recommend them. Thanks!
Katie Novak
Federated Lending was a great mortgage…
Federated Lending was a great mortgage company to work with! We were able to ask questions and get immediate answers.
Jacob Desperak
Wonderful and easy experience!
My wife and I had a very good experience with Fedlend thanks to Andy and Kathy. We couldn’t be more thankful for all the help and guidance we received along the way. Would definitely recommend to all home buyers, as we will use Fedlend for our next purchase or refinance.
Bart Cerami
Andrew Larson and Federated Lending made refinancing my home simple, and saved me a lot of money in the process. And Andy continued to assist me after the closing when I had a question regarding my local tax payment. I have already recommended him to several of my friends and will continue to do so. Thanks Andy!!
Megan Detwiler
We were happy with our experience. Initially there was a step missed that caused a slight delay, but we couldn’t be upset because it ended up getting us a lower rate overall. We were able to sign the documents in the comfort of our own home which was super convenient and appreciated. Would recommend!
Kristen Katzianer
Easy process from start to finish
Easy process from start to finish. The underwriter should make more money.
Jorge Figueroa
Federated Lending Is Fantastic and Honest
This was such an easy transaction. What is probably the most stressful thing to do Andy and his Team made this absolutely seamless. Everything was done perfectly and right on time. Zero issues at the closing table and it all went exactly as it was explained. I was prepared for so many things to be a push up and there was none of it. NONE! I cannot say enough ...
Mike Pawlikowski
Federated Lending comes through again
Federated Lending comes through again. Tom K. and Federated Lending team helped me through the process of getting my original mortgage and now again with the refinance. They made the process very easy and I am extremely happy with the end result. I would strongly recommend if your looking for a mortgage or refinance that you reach out to the Federated Lending Team.
Shawn Cannon
Second time working with Vince
Second time working with Vince. Have had nothing but great experiences. Highly recommend!!
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