Throughout the course of a week I hear multiple times, what impact does my student loan have on me getting a mortgage? Luckily I was able to sit down with Sharlene Bauer of HUNT Mortgage to discuss this question with her.
The first point is that regardless of whether your loans are in deferment or forbearance they still count as a debt, and they weigh just as heavily as an auto or mortgage payment. The bank will look at what your future monthly obligation will be and will include it in your debt load.
Secondly, how can I find out what my monthly obligation is going to be? The best way to know is to call your loan servicer (i.e. Sallie Mae, Navient, etc.) and ask them to calculate your future payment. If you are unable to obtain this information your mortgage lender will do their own calculation, and that can sometimes be worse.
It’s important to know what your monthly obligation is because sometimes your student loan payment can be as high as a mortgage payment. That is another reason to get prequalified before looking for your future home. The impact that your student loans have will dictate your home buying ability.
While student loans are unfortunately a necessary part of a college education, they may not totally disqualify you from obtaining a mortgage.
For assistance with a preapproval and to see how your student loans may impact your ability to get a mortgage you can reach Sharlene Bauer at 716-481-7010 or by email at firstname.lastname@example.org
Please feel free to contact me for help with all of your real estate needs. I can be reached at 716-809-0300 or by email at email@example.com