top of page

Don't Let Student Loan Debt Prevent You From Buying a Home

As of early 2020, 45 million borrowers collectively owe $1.6 trillion in student loan debt in the United States, weighing in at the second highest consumer debt category behind mortgage debt. This very well could be a reason that many millennials don’t own homes, and are waiting until their mid-thirties to buy one.


It is important to note that student loans generally do not reveal your entire financial history, although they are considered in your Loan to Debt Ratio by mortgage lenders. If you have good credit, a stable job and some savings, you still might be a fantastic candidate for a loan. And, paying off your student loans regularly can even show the lender that you are a responsible borrower.


Another important consideration is defaults and their effect on your credit score. If you miss a student loan payment and you have good credit standing before the default, it may not take long to repair your credit score. However, many graduates have little to no credit when they default, which has the potential to hurt your credit and delay your ability to get a home loan. Start building credit sooner rather than later to avoid this.


The best way to become eligible to buy a home is to make sure you are properly managing your debts, whether it be your student loan repayment plan, your credit card debt, car payments, etc. Keep up to date on your credit score, don’t miss your payments, because with a little savings, you might be a great candidate for a home loan.


Speaking to a loan officer about your interest in a buying a home is a great way to get started, as they can help you plan and prepare for applications and may have helpful advice along the way.




Terms:


Loan to Debt Ratio: the ratio of total debt to total assets, expressed as a decimal or percentage. Calculated by adding up all your monthly debt payments, divided by your gross monthly income.**


Default: failure to fulfill an obligation, especially to repay a loan or appear in a court of law.***




Sources:



***https://www.investopedia.com/terms/d/default2.asp


0 comments

Recent Posts

See All
Penny Lane Financial - Trust and Expertise in Financial Services.

Important Disclosures

Equal Housing Lender:
Penny Lane Financial, LLC is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to contract), because all or part of the applicant's income derives from any public assistance program, or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act.

NMLS Consumer Access:
Our NMLS number is 1905686. WA – MB1905686 AZ – 1034711  You can verify our licensure status and find more information about our company at the NMLS Consumer Access website: https://www.nmlsconsumeraccess.org/ WA – MB1905686 AZ – 1034711

Terms and Conditions:
The loan terms and conditions provided by Penny Lane Financial, LLC are subject to change without notice. All loan approvals are subject to underwriting guidelines and credit approval. Not all applicants will qualify. Interest rates and annual percentage rates (APRs) are based on current market conditions and are subject to change.

Mortgage Loan Information:

  • Loan Types: We offer a variety of mortgage loan options, including fixed-rate mortgages, adjustable-rate mortgages (ARMs), FHA loans, VA loans, and jumbo loans.

  • Interest Rates and APRs: The interest rates and APRs provided on our website are estimates and are subject to change based on market conditions and borrower qualifications. Please contact us for the most current rates.

  • Loan Fees and Costs: Mortgage loans may involve fees, including origination fees, appraisal fees, credit report fees, and other closing costs. These fees will be disclosed to you during the loan process.

Consumer Rights and Responsibilities:
As a borrower, you have the right to receive a Loan Estimate within three business days of submitting a complete loan application. This document provides important details about the loan terms, estimated costs, and other important information. You also have the right to receive a Closing Disclosure at least three business days before your loan closing, which outlines the final terms and costs of your loan.

Homeownership Counseling:
If you are experiencing financial difficulties or have questions about your mortgage loan, you may seek assistance from a HUD-approved housing counseling agency. For a list of HUD-approved counseling agencies, visit the HUD website at https://www.hud.gov/program_offices/housing/nationally_hud_approved_housing_counseling_agenciesdirectory

 

Insurance License:
Penny Lane Financial, LLC holds life, disability, property and casualty insurance licenses in WA and AZ, NPN #17702278. We are committed to providing comprehensive financial services, including insurance products, to meet the diverse needs of our clients. Regulated by Washington State Insurance Commissioner at https://www.insurance.wa.gov/

Privacy Policy:
We are committed to protecting your privacy and ensuring the security of your personal information. For details on how we collect, use, and safeguard your information, please review our privacy policy here.

Contact Us:
If you have any questions or need further assistance, please do not hesitate to contact us at 253-327-1177 or email to vip@pennylanefinancial.com.

Penny Lane Washington

Check us out  

Penny Lane Financial NMLS #1905686 WA State, NMLS #1034711 AZ State

 

  • Instagram
  • Facebook
  • LinkedIn

NMLS Consumer Access - click here

EQUAL HOUSING LENDER

 

All Rights Reserved © 2017 - 2024 Penny Lane Financial LLC .

bottom of page