I am about to gain a $13000 debt in student loans. In about 6 months we are applying for a home loan. Will that student loan be applied to my debt to owe ratio? Will it be a factor when applying for a home loan?
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When applying for a home loan your credit report will be reviewed and you may be required to provide a number of other details, including: Employment and income records, Tax Returns for the last few years List of assets, List of liabilities and what you owe, Your budget showing monthly living expenses so that you can demonstrate an ability to pay.
With this information you and your lender will be able to determine the kind of home loan and size of the right mortgage for you. In some cases, you can obtain a pre-approval or pre-qualified certificate, which shows how much you can borrow so that you can then shop for homes in an appropriate price range.
Possibly. It depends on how much your income is and how much you have to make in monthly payments to your student loan. When the bank looks at your ability to repay a loan, they want to see that the total house payment (for principal, interest, taxes and property insurance) is less than 28% of your gross monthly income, and that the real estate payment plus all other debts (car, credit card, student loan) are not more than 33% of your gross monthly income.
So, I would go to http://www.bankrate.com and use their loan calculator to figure out what the monthly payment will be for this $13k loan (it is probably less than $100), and then calculate what your 28%/33% ratios are, and see if the $100 student loan payment will push you above 33%.
No, never. It will not stop you from getting home loan. Home loans are given to wide range of people and with wide range of credit score. If you can secure some thing you can easily get this loan. If you are not securing any property you need to get this loan with bad credit lenders. There are lot of bad credit lenders who are ready to give you home loans. Apply online and get the loans done.
Below website will help you in getting a mortgage loan.
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