Will Student Loans Affect Your Chances Of Getting A Mortgage?

If you’ve spent time cleaning up your credit to reduce debt, then you might be wondering what to do about all those student loans that are still outstanding. For some people, paying off all the student loans before applying for a mortgage is simply not possible. If you fall into this category, then you should know that student loan debt can affect your chances of mortgage approval.

Student loans are just like any other type of debt in that mortgage lenders consider them a factor in assessing how much home you can afford. The loans are part of the bigger picture debt-to-income ratio. They are another financial responsibility, which lowers how much money you have available to spend on a mortgage each month.

If you cannot pay off all your student loans, then do ensure that you make all payments on-time to avoid delinquencies on your credit report. Also consider consolidating your student loans so that you end up with a smaller monthly payment, which increases how much you can spend on a mortgage payment each month.

For more information on mortgage services in California, contact Avis Lending today. We are happy to help you with any mortgage questions or concerns.

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