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Have Student Loans? Think you Can't Buy a Home? WRONG!

Getting good information on mortgages is so important in today's market. Not all lenders are the same and having the right information is essential. Sometimes, to make sure you can acheive your goals. It may mean you have to wait or adjust the plan initially, but at least it allows you to plan.

This is an excellent post by Gene Mundt about student loans and how you can get a mortgage and what you are going to need to obtain one to buy a home.

If you need help in the Tredyffrin Easttown and surrounding Main Line area contact Nick Vandekar, Tredyffrin Easttown Realtor with Long & Foster Real Estate Inc., Nick@VandekarTeam.com, office 610-225-7400, cell or text 610-203-4543, website www.SellingTheMainLine.com

 

Have Student Loans?

Think you Can't Buy a Home?

WRONG!

  

Do you ...

  • Want to buy a home?
  • Have Student Loan debt?

If you answered "Yes" to the questions above, it's important for you to know that contrary to what is commonly seen and believed, it is possible to buy a home when you have Student Loans ... and many are doing it.

Student Loans do not have to stand in the way of home ownership.  You can buy and finance a home purchase successfully.  

How?  Here's some information ...

Remember back to your Student Loan search?  There were multiple options for you to consider, right?  

There were: 

  • Private Loan options  
  • Federal Loan Options 
  • Differing loan terms 
  • Differing repayment plans  
  • Options to defer payments 
  • Re-payment that could be based on future income
  • Interest-only payments
  • More

Well, just as there were differing loan options available to you then, there are also differing mortgage options available now.  Mortgage options that can help you buy a home. 

In order to accomplish this, it is, however, important to choose and work with a Mortgage Originator with experience in successfully closing mortgages for Borrowers that have Student Loans ...  

Why is this so important?  

Student Loans can present a bit more of a challenge when making application for a mortgage.  Here's how that's true ...    

Refer back to all the many types of Student Loans and repayment options mentioned above.  Now consider, each of them reports differently to the Credit Bureaus. 

Some Student Loans report the balance of the loan only. Others report only the minimum payment requirement.  Still, others show that a deferment is in place and that no payments are currently being made.

And the majority of Student Loan providers do not report the actual terms of the loan held.  They also do not report the full payment required to pay off that loan in its entirety (known as Fully-Amortized Payment).

Now add the following challenges to the mix:  Fannie MaeFreddie MacFHA, and VA are the biggest entities that provide guidance on underwriting home loans to their standards.  

They each have their own rules and guidelines regarding Student Loans and how they view and treat that debt.  It would be virtually impossible to reveal all those rules and guidelines here with any clarity.  

Your New Lenox - Chicagoland Mortgage Expert!But it's easy to understand why working with a Mortgage Originator that is inexperienced in working with Student Loans could prove disastrous and costly to a Borrower.

There's little doubt:  Buying a home while having Student Loans can prove challenging ... financially and within the mortgage process itself.   But it's important that you don't automatically assume that you can't buy just because you have Student Loans.

So given all the above, what's the best plan of action, if you hope to buy a home in New Lenox - Chicagoland, but have Student Loan debt?

In order to get a true factual picture of your home buying opportunities and options, you and I need to speak.  I will gather, then review, your personal financial situation to best assess what home buying and financing options you have.  Until that review is conducted and completed you will not know where you stand or what your true home buying - financing options are.

During that review, it will be important that you have the following info and documentation available to share with me:

 

  • Your Student Loan Statements 
  • Your Loan Agreements 

 

So please, have them handy when we speak.

 

These documents will provide me the facts regarding your Student Loan debt and repayment ... and will allow me to assess how yourspecific Student Loan debt will be treated on a monthly mortgage payment basis.  

This assessment is vitally important.  It will determine if you can move forward with a home purchase immediately.  Or should that not be possible, provides us the information we need to prepare you to buy in the future.  

If you go away with just one lesson learned here ...

It's to not get discouraged or jump to conclusions regarding your ability to buy a home.  Student Loans don't have to be a deal-breaker or barrier to fulfilling your home buying dream.  

Let's talk now ...

 Have Financing Questions? Contact Me!
 
 

* Hoping to Buy or Refinance a home in the Chicagoland area?  Contact Me!  I'll put my 40 years of Mortgage experience and expertise hard to work on your behalf.
I'm easily found at:

Gene Mundt

Mortgage Originator  -  NMLS #216987  -  IL Lic. #031.0006220  -  WI Licen #216987

American Portfolio Mortgage Corp.

NMLS #175656
 
Direct: 815.524.2280
Cell or Text: 708.921.6331
eFax: 815.524.2281
 
 

  

 Twitter Account of Gene Mundt, Mortgage Lender   LinkedIn Account of Gene Mundt, Mortgage Lender   Facebook Acct. of Gene Mundt, Mortgage Lender   Pinterest Acct. of Gene Mundt, Mortgage Lender   

   Gene's Chicagoland Blog/Gene Mundt, Mortgage Lender  

    

 

Gene Mundt

 Mortgage Originator  -  NMLS #216987    

                                   IL Lic. #0006220  -  WI License                                                                                                     

NMLS #175656

 

Gene Mundt, Mortgage Originator,  40+ years of #mortgage experience, will offer you exemplary mortgage service and advice when seeking:  #Conventional, #FHA, #VA, #Jumbo, #USDA, and Portfolio Loans in #Chicago and the greater Chicagoland region, including:  The #Lincoln-Way Area, #Will County, (#New Lenox, #Frankfort, #Mokena, #Manhattan, #Joliet, #Shorewood, #Crest Hill, #Plainfield, #Bolingbrook, #Romeoville, #Naperville, #Wilmington, #Peotone, etc.), #DuPage County, the City of Chicago, #Cook County, and elsewhere within IL and Wisconsin. 

 

Your Referrals & Testimonials are Always Greatly Appreciated! 

 

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Comment balloon 4 commentsNick & Trudy Vandekar, 610-203-4543 • August 17 2017 09:47PM

Comments

Nice choice for a reblog, I always worry a little bit when buyers insist on using a lender they found on the internet or something like that, haha.

Posted by Brian England, MBA, GRI, REALTOR® Real Estate in East Valley AZ (Arizona Focus Realty) over 1 year ago

Sage advice from Gene, Nick!  It's so nice to have great referral partners to help our buyers worrying about student debt, buy the home of their dreams - despite student loan debt.

Hope you're having a fabulous weekend!

Posted by Debe Maxwell, CRS, Charlotte Homes for Sale - Charlotte Neighborhoods (www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310) over 1 year ago

Hi Nick and Trudy,

This is a timely blog for graduating students who are getting out in the world and want to settle down and don't think they have the options to buy a home. Nice reblog. 

Posted by Sheri Sperry - MCNE®, (928) 274-7355 ~ YOUR Solutions REALTOR® (Coldwell Banker Residential Brokerage) over 1 year ago

This is good information to share but I do worry that some will qualify for a loan and over-extend themselves. Thanks for reblogging!

Posted by Nathan Gesner, Broker / Property Manager (American West Realty and Management) over 1 year ago

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