homeowners please read

For those who took out mortgages I have a question.

I currently have 18K left for loan repayment. FH is saying that before we can get a mortgage he thinks I have to pay the loan off. I'm fine with this, but of course it will cut into my savings tremendously. I dont have to pay interest on this loan until I'm done with my Masters degree thats why i havent started paying it back as of yet. Is it true that my student loan will have to be paid in full prior to being able to get a mortgage?

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Posted by laural2979

That's totally untrue. Students loans are relatively low interest and as long as you make payments on them it's considered 'good debt'.

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I agree. The interest on them can also be deducted off your taxes (depending on how much money you make).

Dont pay it off... we just got a great mortgage (in the process still) and I have students loans and a car loan. They will just take into account your monthly payment for you loan. Which shouldnt be much if its a student loan!! You'll be fine.... keep your savings!

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Posted by Soon2BeMrs2006

so what do mortgage companies have you pay off prior to?

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nothing in my experience. it's not for them to say. it's true that you could get better interest rates with better credit but they can't FORCE you to pay off any debts.

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Posted by Soon2BeMrs2006

For those who took out mortgages I have a question.

I currently have 18K left for loan repayment. FH is saying that before we can get a mortgage he thinks I have to pay the loan off. I'm fine with this, but of course it will cut into my savings tremendously. I dont have to pay interest on this loan until I'm done with my Masters degree thats why i havent started paying it back as of yet. Is it true that my student loan will have to be paid in full prior to being able to get a mortgage?

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um absolutely not!!!

it will be worked into how much you can qualify for- like if you have a car payment or credit cards...

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Posted by aliwnec10

nope not true at all. I currently have a $33,000 loan and we were just approved for a mortgage. Although i must say, i believe its easier to get a mortgage as two applicants than as a married couple with that loan amount.

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can you explain how its easier to get a mortgage as two applicants rather than as a married couple???

i don't understand -

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Posted by Meaghan729

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Posted by aliwnec10

nope not true at all. I currently have a $33,000 loan and we were just approved for a mortgage. Although i must say, i believe its easier to get a mortgage as two applicants than as a married couple with that loan amount.

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can you explain how its easier to get a mortgage as two applicants rather than as a married couple???

i don't understand -

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I wish i could... but it won't come out right. But here goes... all i know is that if you have a significant loan, it's easier to apply as 2 single people because you will have one main applicant and then their will be a co-applicant. Therefore, the person with the less debt should be the main applicant. Once you're married... its a debt that both of you have, especially since you'll file your taxes together. Is this making any sense? I could be speaking out of my a*s to speak, but this is what i heard.

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Posted by aliwnec10

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Posted by Meaghan729

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Posted by aliwnec10

nope not true at all. I currently have a $33,000 loan and we were just approved for a mortgage. Although i must say, i believe its easier to get a mortgage as two applicants than as a married couple with that loan amount.

---

can you explain how its easier to get a mortgage as two applicants rather than as a married couple???

i don't understand -

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I wish i could... but it won't come out right. But here goes... all i know is that if you have a significant loan, it's easier to apply as 2 single people because you will have one main applicant and then their will be a co-applicant. Therefore, the person with the less debt should be the main applicant. Once you're married... its a debt that both of you have, especially since you'll file your taxes together. Is this making any sense? I could be speaking out of my a*s to speak, but this is what i heard.

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lol - no it doesnt make any sense!! i have a commercial lending, not a consumer lending background, so maybe thats why??

FH and I both have student loan debt so it really doesnt apply to us - but at work tomorrow i'll def ask the mortgage guys about this!

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Posted by Meaghan729

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Posted by aliwnec10

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Posted by Meaghan729

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Posted by aliwnec10

nope not true at all. I currently have a $33,000 loan and we were just approved for a mortgage. Although i must say, i believe its easier to get a mortgage as two applicants than as a married couple with that loan amount.

---

can you explain how its easier to get a mortgage as two applicants rather than as a married couple???

i don't understand -

---

I wish i could... but it won't come out right. But here goes... all i know is that if you have a significant loan, it's easier to apply as 2 single people because you will have one main applicant and then their will be a co-applicant. Therefore, the person with the less debt should be the main applicant. Once you're married... its a debt that both of you have, especially since you'll file your taxes together. Is this making any sense? I could be speaking out of my a*s to speak, but this is what i heard.

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lol - no it doesnt make any sense!! i have a commercial lending, not a consumer lending background, so maybe thats why??

FH and I both have student loan debt so it really doesnt apply to us - but at work tomorrow i'll def ask the mortgage guys about this!

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can you please let me know what you find out? I'm just curious. Thanks!

Nope-not true..

I will say however, that your income to debt ratios have to fall within a certain %.

So if you owe a ton of $$ on credit cards plus your student loans and your income is really low you may have issues.

Def talk to your mortgage company about this.

It doesn't matter what debit you have as long as you have paid it on time and your debt and income have good balance.

I think my latest debt/income ratio came in at 25% which was good. I don't know the formula.

Yeah definitely dont pay off loan yet. FH and I both have med school loans. He owe 100K and I owe140K
We took out the mortage under his name since he owes less.