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Frequent Contributor
L-TWT
Posts: 290
Registered: ‎12-18-2011

Never in my wildest dreams....

would i have thought that carrying students loans would be looked upon so negatively by mortgage lender's, it's depressing. Maybe I was naive to think, after finishing school and finding a good well paying job would be enough! :smileyfrustrated:

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"Having a credit card is nice, but cash is king"
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Established Contributor
SCF
Posts: 939
Registered: ‎06-09-2008

Re: Never in my wildest dreams....

I've never heard of a mortgage lender looking more negatively on student loans than other types of debt.  I suspect your problem is not so much that you have student loans, but that you may have too much debt vs. your income.

 

If you're looking to bring down your DTI to prepare to buy a home, I would avoid consolidating your student loans if you haven't already.  When they are not consolidated, you can work towards paying off one or more of your smaller tradelines, which can reduce your monthly payment.  After you've paid off what you can, you could then consolidate and choose the lowest payment plan you can get to bring your DTI even lower.

Frequent Contributor
L-TWT
Posts: 290
Registered: ‎12-18-2011

Re: Never in my wildest dreams....

Most of my debt is student loans, i owe more than 6-figure + on my student loans my friend. Every lender i have been to have told me i pre-qualify for a mortgage upto 250K, but if i were to pay down my student loans i would be able to pre-qualify for much more. I live in NYC and 250K does not get one much, especially were i would like to live.

Portfolio: Amex BCE (21.6k) | Cap1 QS VS (15k) | Citi Dividend WEMC (30K)

"Having a credit card is nice, but cash is king"
Established Member
lov2xlr8
Posts: 12
Registered: ‎10-24-2012

Re: Never in my wildest dreams....

Frustrating to hear, I'm in a similar boat... over six-figures in student loans but no other debts, 6-figure income, excellent credit, I'm in NYC as well right now but don't think I would look at buying a house here, hopefully Fl in 5 years maybe :-)... have wondered though how much the student loans would impact what I would be offered

New Visitor
soscrewed
Posts: 1
Registered: ‎09-26-2013

Re: Never in my wildest dreams....

Dont feel bad-

I've been denied jobs beacause of the balance on my loans:

Halfway through my MBA in Finance, I couldnt get a job at a bank because "I was too much of a risk"

Oh, before that, I applied as a Greenpeace volunteer, and was rejected, because of my student loans. 

Again, I was viewed as a "risk"- or someone trying to flee the country to avoing paying.

 

Frequent Contributor
L-TWT
Posts: 290
Registered: ‎12-18-2011

Re: Never in my wildest dreams....


lov2xlr8 wrote:

Frustrating to hear, I'm in a similar boat... over six-figures in student loans but no other debts, 6-figure income, excellent credit, I'm in NYC as well right now but don't think I would look at buying a house here, hopefully Fl in 5 years maybe :-)... have wondered though how much the student loans would impact what I would be offered


Yes it is sad, almost depressing. I was hoping to capitalize on the current low mortgage rates!

Hey, maybe we can move together, I'm neat!!!:smileylol:

Just kidding.....

Portfolio: Amex BCE (21.6k) | Cap1 QS VS (15k) | Citi Dividend WEMC (30K)

"Having a credit card is nice, but cash is king"
New Contributor
stillworking
Posts: 71
Registered: ‎09-25-2013

Re: Never in my wildest dreams....

I suggest you start paying down your loans.  Although you have a 6 figure income, I doubt you would want a large student loan payment along with a high mortgage.  Just save money for closing, down payment, and reserves.  It might not happen as fast as you would like, but just keep at it.


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Established Member
lov2xlr8
Posts: 12
Registered: ‎10-24-2012

Re: Never in my wildest dreams....


L-TWT wrote:

Yes it is sad, almost depressing. I was hoping to capitalize on the current low mortgage rates!

Hey, maybe we can move together, I'm neat!!!:smileylol:

Just kidding.....


Haha, with our SL/credit histories combined, we could maybe pre-qualify for 1/2 of an UES apt... that's why I stick to Astoria (just work in Manhattan)


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