January 2012 Weddings
MeganNN12
member
Dear Community,
Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
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Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Student Loan Debt and Home Loans
I was just wondering if anyone knew how greatly student loans impact the possibilty of being approved for a home loan. I am running all the worst case things in my head. DH has has his loans on forebearance and is paying on the ones that are active. I, however, have not been so good about paying back my student loans. Do you think this will destroy of possibility of getting approved for the loan? I know the bank and loan officer are the only ones who can say yay or nay, but I was just wondering. Any thoughts are appreciated. Thanks!
Re: Student Loan Debt and Home Loans
Honestly, it really does hurt you because of the debt to income ratio. J and I have excellent credit. We have absolutely no blemishes. So many people have said that to us.
When we went to apply for a home loan to start the process they basically laughed at us because our payments to the student loans lessen how much we can pay a house payment=less money for a house. We are working on a plan of how we can fix that, but yes our student loans are what is keeping us from getting a house right now.
My advice would be realistic with yourself. You may not get a house this year and you have to be ok with that. You child will not know that they moved when they are this young.
You can have about 37% debt to income ratio, however, this doesn't mean that banks are willing to go up this high, especially if you don't have a great deal of money for a down payment or have not so stellar credit. You can start by figuring what percentage of your income goes to your current loans. Figure out what payments you are required to make each month towards them and figure out what the percentage of your income the payments are.
Or, you could take the easy route and use this calculator. My finacial planner recommended it to me. http://www.bankrate.com/calculators/mortgages/new-house-calculator.aspx
Figure about 1000 for insurance. It will tell you an estimate of how much money you can borrow based on your current incomes.
My student loans were what made me feel liffy about getting our house. My payments are about $500 a month and at the time were in forbarence but the monthly payment still had to be included to figure out our debt to income ratio.
I will still go through the procress to see if you can get approved. Because at the very least you will know exactlly what you will need to fix to get your credit where you need it to be for a house.
I know this is a tough crappy road but hang in there because it will be worth it in the end.
Yikes, I didn't even think about student loans being a factor for us buying a house. We are not going to try for a few years now but now I'm a little worried. We love the townhouse we live in now we just wish it was a little bigger. Our plan is to rent it until Sept. 2014 and then buy a house, or if we can find an affordable rental that is a house, we'd consider that.
Good luck Megan!
Married the love of my life on 1-21-12. Our princess arrived on 5-28-13.