Don’t Let Student Loans Delay Your Dream of Owning a Home

Don’t Let Student Loans Delay Your Dream of Owning a Home

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If you’re looking to buy a home, you may be wondering how your student loan debt could impact those plans. Do you have to wait until you’ve paid off your student loans before you can buy your first home? Is it possible to qualify for a home loan with that debt?

While everyone’s situation is unique, your goal may be more within your reach than you realize.

Do you have to delay your plans because of student loans?

If you’re worried your student loans mean you have to put your homeownership goals on hold, you’re not alone. Many first-time believe they have to delay their plans. According to data from the National Association of Realtors (NAR):

When asked specifically about purchasing a home, half of nonhomeowners say student loan debt is delaying them from purchasing a home (51%).”

When asked why their student loans are putting their plans on the back burner, three key themes emerged:

  • 47% say their student loans make it harder to save for a down payment 
  • 45% say they think they can’t qualify for a home loan because of existing debt
  • 43% say they believe the delay is necessary even though they’ve never applied for a mortgage

No matter which reason resonates most with you, you should know a delay may not be necessary. Here’s why.

Can you qualify for a home loan if you have student loans?

In the same NAR report, data shows many current homeowners have student loan debt themselves:

“Nearly one-quarter of all home buyers, and 37% of first-time buyers, had student debt, with a typical amount of $30,000.”

That means other people in a similar situation were able to qualify for and buy a home even though they also had student loan debt. You may be able to do the same, especially if you have a steady source of income. Apartment Therapy drives this point home:

“. . . buying a home with student loans is possible, experts say. The proof is in the numbers, too: Some 40 percent of first-time homebuyers have student loan debt, according to the NAR study.”

The key takeaway is, for many people, homeownership is achievable even with student loans. 

The best way to make a decision about your goals and next steps is to talk to the professionals. A real estate advisor can walk you through your specific situation, your options, and can connect you with experts to walk you through what’s possible.

Is Selling My Own Home a Good Idea?

Is Selling My Own Home a Good Idea?

We’re in the middle of a hot market. With historically low inventory and soaring prices, it might seem like a great time to sell your home yourself. My house will sell itself, right? Not exactly. Here’s why it’s best to let a professional handle the biggest transaction of your life.

1. Agents will help you avoid emotional sales

Working with an agent can help you effectively negotiate what is often the biggest transaction of your life. Sellers are likely to be emotional about the process (it’s your house after all!) Yes, selling a home is a BIG deal, so let’s try and keep a level head : )

2. Correct pricing

Overpricing is a common mistake FSBOs make. Pricing it correctly will help attract the right buyers for your home. The money you think you’re saving by not paying a commission, may end up costing you. Ironically, the National Association of Realtors estimates FSBO homes sell for as much as 11% less than those who sold with a real estate agent. In the end, FSBO sellers often end up accepting a lower price for their home than they would with an agent.

3. Effectively negotiate and show your home

It’s important to have someone on your team who understands how to fulfill contracts and negotiate on your behalf. Added to that, having the seller present for showings makes everyone a bit uncomfortable. A much better showing experience for all is when buyers have the freedom to take their time going through a house.

4. An agent will help weed out unqualified buyers

It’s more than just pricing and accepting an offer. Working with an agent will help limit the risks of selecting a buyer who is unprepared to purchase your home and will help you identify the strongest offers.

5. Are you ready to make this your full-time job?

From marketing, to the open house, showings, inspection, appraisal, paperwork, phone calls, offer deadlines, and everything in between, selling a home is a full-time job. Agents help hold it all together and make sure you meet the commitments that are essential to the final sale of your home.