Can I Buy a House While Paying Student Loans?

-

More than 2/3 of college graduates have student loan debt with an average balance of $30,000, and an average student loan payment is around $400, which burdens Americans more than credit card debt. Crazy right? The ultimate goal for most people is owning a house, but can you have student loans and a mortgage at the same time? Yes, yes you can! Here’s how:

    1. Tip number one to getting a mortgage is not falling behind on your student loan payments. Missing a payment will hurt your credit score and mortgage lenders will see this as a red flag, so stay on top of those payments! If you can, pay a little more than the monthly balance so lenders see that you're making an effort to pay off the loans faster.
    2. Tip number two to getting a mortgage is to get someone to co-sign with you. Make sure this is a trusted person that will help with the payments, so it’s best to do this with your spouse. Combining income to get a mortgage and paying it off eases the stress from those monthly bills.

We understand that buying a home is hard when you have so many bills to pay already. Before you get into this huge responsibility, make sure you are financially stable and are sure you can afford to take on this responsibility. We offer free resources with our GreenPath Partners to help guide you in your financial journey. They can help you set up a financial plan that is unique to you and your financial struggles to help you get out of debt.

If you’re ready to buy a house and are looking for a mortgage, don’t go to the big banks or a mortgage company! We offer affordable loans for your real world needs. Our Home Loan specialists will work closely with you to determine which mortgage product is the best solution for your needs. Check out our mortgage loans here. 

All comments within the New Horizons Credit Union blog are the responsibility of the commenter, not the blog owner, administrator, contributor, editor, or author. By submitting a comment on our blog, you agree that the comment content is your own and to hold New Horizons CU and all subsidiaries and representatives harmless from any and all repercussions, damages, or liability.

Comments

Post a Comment

Popular posts from this blog

6 Steps to Take Before Retiring

-
Image
Everyone counts down the years, days, and minutes until they can retire. But before you retire, there are six important steps you need to take to retire worry free. 1. Define Your Retirement When you define your retirement, you think about what it is you want to accomplish. Do you want to travel the world, the states, or stay at home and relax? Do you want to make improvement to your home, or sell your home and purchase an RV? When you know exactly what it is you want to do when you retire, you will have an easier time transitioning from work to retirement life. 2. Take Stock of Your "Assets" This is an important step because you're taking a look at all the money you have. Look at how much you have in your savings accounts, retirement accounts, stocks and bonds, and any other savings accounts you may have. This will give you a better idea on how much money you can allocate to everything you want to do. 3. Create a Retirement Budget Creating a budget...
Read more

7 Steps to Start Saving

-
Image
Saving can be a little intimidating when you don't know where to start. But remember, the biggest mistake you can make is not saving. Below are a few tips to help you get started with saving. 1. Track Your Expenses The first step to start saving is to track your expenses. Figure out where your money is going, how much you are earning and spending, and how much you have left over. If you use a credit card, you can get a chart with your expenses broken down where you can see what you're spending your money on. Once you figure out where all your money is going, categorize it so it's easier to see where you're spending most of your money. Use this to create a budget in step two. 2. Create a Budget Now that you have your categories, create a budget so you can minimize spending. Categories should include things like: rent / mortgage car payment / car maintenance bills doctors appointments clothes food Remember, your ex...
Read more

Get Your End-of-Year Financial Health Checkup

-
Image
As the eagerly awaited holiday season gets underway, the end of the year is a great time to get a financial health checkup to make sure your finances are on track. With regular checkups, you can fix small problems before they become big issues. This year-end, keeping financially healthy is specially important due to many economic uncertainties related to inflation, inventory shortages,as well as the expiration of COVID relief programs put in place more than a year ago to help people manage through the pandemic. Your Financial Health Check Up Like a physical health checkup, a financial checkup examines your vital signs to be sure all is well when it comes to your financial health and wellness. Do you have an emergency savings account? How do your credit card balances look? Are you tracking monthly income and expenses? What does your credit score and history look like? These are a few of the vitals reviewed during an end-of-year financial checkup. From an overall budget revie...
Read more