Student loan payments by themselves are not a detriment. A borrow’s debt to income ratio is calculated as a percentage of their pre-tax income; your qualifying income. And not all loan programs consider student loan payments equally. Most student loans even have multiple repayment plans. Someone might consider changing the payment on their student loans to assist with qualifying to buy a home. Other factors are considered when qualifying for a mortgage loan, so don’t isolate debt and talk yourself out of learning. Maybe consider an income producing property like a duplex or have someone else pay your mortgage for you, or maybe a portion of it. Ask us how.
Pre-qualification does not mean automatic loan approval. Instead, pre-qualifications provide a very rough estimate. Pre-approvals on the other hand are more substantial and take multiple things into consideration such as debt, your qualifying income, financial reserves and your credit profile; not just your credit score. It’s essentially a lending decision only needing a property address. Pre-approval strategy meetings teach folks how to buy. This is something we pride ourselves on. Ideally, this happens before you’re even shopping for a home. Starting with the right strategy promotes smooth dealings from negotiating a purchase agreement all the way through closing. Ask us how.
Technically, a home inspection is an option that you can consider when entering into a purchase agreement. However, being optional is not something that you should be thinking of when considering, “Should I do a home inspection or should I not do a home inspection?” Learning the details about a home’s bones, the structure and potential pitfalls will allow you better clarity as you begin to move forward with the decisions that you are going to make, not only as it relates to the home that you are going to buy, but the financing options that you are going to consider. Ask us how.