How To Manage Student Loan Debt When Buying a Home

One of the main issues for millennials and young professionals when they first start out their careers post-college is student loan debt.  This can really pile up quickly during college, giving students (and in some cases, their parents) a real headache to deal with.  It’s already tough to find a job, then you have to start repaying the mountain of debt that you accrued learning how to do the job!  It makes buying a home much harder if you’re thousands, or hundreds of thousands of dollars in debt when you get your diploma.  However, all isn’t lost if you want to buy a home.  Here is how to manage student loan debt when buying a home.

First thing’s first – get those payments to something manageable.  Don’t keep deferring them if you can afford to pay them.  Call the student loan company and talk to them to setup a payment schedule or arrangement. While it’s good to get this off of your mind, they get that you won’t have a ton of money and will work with you – they don’t want you to not pay them either.  You can also try to consolidate them into a personal loan, but the interest rate on your student loans often is pretty low, so you may not be able to match that with a loan from the bank.

Remember, though, the government has income-determined plans that will help you make those payments depending on your ability to pay, but if you refinance with a bank, they do not care about your job or situation.  You make those payments or they will hound you with everything at their disposal.

I recommend setting up a payment you can afford, and then creating an automatic payment to handle it every month.  That way, you never miss it.  This will help your credit immensely as well, making you a more attractive borrower for your mortgage.

In fact, that’s a great lesson to learn about buying a home.  PAY YOUR BILLS.  You’d be surprised how often a mortgage gets scuttled because someone owes money or hasn’t paid a bill somewhere.  Another tip – put a fraud alert on the three major credit bureaus.  This can help protect you if you end up in a situation where you trust the wrong people with your credit information or your student loan repayments.

Call The Home Loan Expert Team in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515 or Nashville at (615) 810-8555. You can always apply online at www.thehomeloanexpert.com, and we’re also open on Saturdays to better serve you. We work hard to make it easy on you.  Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?

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