I am going to be taking out student loans but that will be the only debt that we have could we get a house while I am in school or should we wait. We have 2 credit cards that have a low balance and a car loan that we are paying down quickly. 6000 is the car loan which will be eliminated the beggining of next year. How much should we have in savings. How much should we have to put down on the house. Please im me or email me or send me a link before I take out the student loan.
2006-11-19 05:06:11 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Student loans are considered "good debt" which means that the debt was incurred for something positive, not a big screen or 900 pairs of shoes. If you're not working and I assume your husband is, it depends on the lending agent as to wether you will get approved. Lenders like for you to put down 20% of the price of the house. That amount down also gets you out of paying PMI which is an insurance that the lender makes you take out to cover them in case you default on the loan. But w/ 20% down, they consider you to have enough financially vested not to walk away. Suze Orman has many books out that really help normal people understand all things financial. I highly recommend you give her a try. Good luck!!
2006-11-19 08:47:55 · answer #1 · answered by Josi 5 · 0⤊ 0⤋
Credit, Income and Assets
How is your credit and how much are your payments.
Do you have regular income from an acceptable source.
Do you have a downpayment or money for closing costs.
A student loan payment will count in your income-to-debt ratios, and you don't want those to be higher than 41%, generally. For example if your income is $2,000 a month and your rent, car payment, any other loans or credit cards add up to $1000, then you have a 50% ratio. Not great if you want to avoid a future foreclosure.
If your credit is good, you should be able to qualify for 100% financing, requiring no downpayment. There are a lot of these programs out there.
Your first step should be to contact a licensed mortgage broker in your area, preferably one with membership in a professional association. Mortgage Brokers generate almost 70% of mortgage loans.
You can find a professional mortgage group by doing a search for your state association, or even by going to NAMB.org, the national association site.
Good luck - I can only help if you're in Florida, but you're welcome to visit my website for a lot of mortgage info!
2006-11-19 17:28:36 · answer #2 · answered by jenay672001 3 · 0⤊ 0⤋
I think you should try to get the house before you get the student loan so you can get approved for a higher amount. However, I don't think getting a student loan will effect you getting a home either. To answer your question the banks look at your credit score from the three credit bureas and use the medium. Than you they look at you income and collateral. The collateral that they are looking for is savings and checking amounts, cds, any kind of investments, 401k (good one because you can take out tax free when purchasing a home). Finally, they look at your debt to income ratio. How much you pay out and how much you bring in. Shoot me an e-mail if I can assist you.
2006-11-19 14:03:04 · answer #3 · answered by Melissa 2 · 0⤊ 0⤋
before you buy a house here is what you need to know 1) sit down with a mortgage or lending proffesional 2) work on your credit rating 3) figure out how much home you can afford 4) do your homework on the area-crime, schools ect 5) work with a realtor 6) do a home inspection 7) read the contract carefully and have a professional review it.
2006-11-19 13:23:36 · answer #4 · answered by lisa 1 · 1⤊ 0⤋
Good credit and the ability to pay the notes
2006-11-19 13:08:18 · answer #5 · answered by Anonymous · 1⤊ 0⤋
I say go for it I did Good Luck
2006-11-19 13:49:56 · answer #6 · answered by pattibcacl 6 · 0⤊ 0⤋