How Student Loan Debt, Credit and Savings Impacted My Home Buying Process (Ps. It's still possible!)
Can you buy your first home and still have student loan debt? Absolutely! But it will impact you in a few ways that you should be aware of.
When I started my first-time homebuying process, I thought I was ready because I had paid off a little student loan debt, built my credit score up, and was saving for a few months. But once I received that first pre-approval letter (which includes the amount that a lender approves you for), I knew there was work to be done. I should have known to stop right there. But I decided to go shopping anyway lol, which was short-lived. My loan amount was under $250,000 and I was living in an expensive area at the time, which meant = very limited inventory.
After searching and searching for homes, my lender and real estate agent encouraged me to take a break from the home buying process to work on my credit, debt, and savings. I needed to lower my outstanding credit balance (was almost done with paying off my car), I needed to pay down more (student loan) debt, and I needed to save a little more (this was my decision). All of this helped me become an attractive buyer who got a great interest rate the second time, was pre-approved for double ($500,000), secured closing costs assistance/seller credits, and was able to walk into my home with equity (a huge benefit for newly built homes).
Watch this video to learn more about how each of these areas will impact your journey and why it's important to prioritize them NOW. No matter where you are on the homebuying journey.
Instagram (we have lots of fun over here):
https://www.instagram.com/maximized.money
Ready to find the right real estate agent for you? Download my free checklist for questions to ask:
https://www.maximizedmoney.com/homebuyers-checklist
Want to get your finances together for your big home purchase? Join my free Homebuyer Goals Challenge:
RECENT EPISODES
