Are you interested in purchasing your own home, but apprehensive to apply for a mortgage because you owe money for student loans? Although student loan debt does greatly impact your monthly finances, there is still an opportunity to be a homeowner. If you have student loans and are interested in buying a home in Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, Foundation Mortgage is here to help. Read further to learn how you can purchase your own home even if you owe money on student loans.
Will Student Loan Debt Affect Your Likelihood of Obtaining a Mortgage?
According to a recent report from the National Association of Realtors, over half of non-homeowners based in the United States report that having student loan debt is causing them to put their plans to purchase a home on the backburner. In fact, the survey states that 47% of non-homers believe having student loans make it more difficult to save for a down payment, 45% believe that their existing debt will make it impossible to qualify for a mortgage, and 43% feel as though they have to put off buying a home even though they have never even applied for a mortgage. Although owing student loans can pose certain challenges when you apply for a mortgage, it does not make it impossible to qualify and purchase a home.
Tips For Improving Your Likelihood For Mortgage Approval With Student Loan Debt
Even if you owe a significant amount of money towards student loan debt, you still may have the opportunity to become a homeowner. Some tips to help you improve your chances of getting a mortgage include:
- Saving every cent that you can to help you afford a down payment.
- Focus on how much money you are able to make at your job so you can emphasize to lenders that you can afford your mortgage payments.
- Make a point of stressing that you are able to maintain steady employment and highlight the amount of time that you have been in the workforce.
- Take any steps that you can to attempt to improve your credit and maintain a healthy credit variety.
- Don’t close down any inactive accounts because that will lengthen your credit history and will allow for a higher amount of available credit.
- Monitor your utilization of credit like a hawk, and review your credit report for any fraudulent charges or errors.
Get Assistance Applying For a Mortgage Today
Becoming a homeowner is not impossible while owing money for student loan debt if you take the right steps. If you are looking for a home in Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, contact Foundation Mortgage today for a consultation.