Philadelphia, PA (PRWEB) November 23, 2014
National Debt Relief recently shared in an article published November 18, 2014 some tips on how to increase the chances of a student loan borrower in getting a mortgage. The article titled “How To Get A Mortgage Despite Your Student Loans” looks into two financial tools that borrowers can maximize to increase the chances of getting a mortgage.
The article starts off by explaining that a lot of student loan borrowers are struggling with their finances when repayment starts to kick in especially those that have huge amounts of college debt. These borrowers are forced to make a lot of personal sacrifices just so they have enough money to pay off this debt.
Stress is also common with these borrowers because they need to make a conscious effort in avoiding delinquency and default on their student loan repayment. This is because the federal government has extensive collection powers such as wage garnishment, intersecting tax refunds and when the student loan still has a balance come retirement time, the benefits can also be deducted in favor of student loan payments.
The article points out that with this pressure of student loan repayment, there are a lot of borrowers who are delaying household formation such as marriage and having kids as well as postponing investment opportunities particularly home buying. The student loans are hurting the borrower's budget that they prefer to pay it off first.
But for those that still want to get a mortgage loan inspite of student loan repayments, the article talks about two things to work on. The first of which is reducing the debt to income ratio.This is one of the items that lenders will look into when giving out a mortgage loan. One way to do this is to choose a repayment plan that will let you pay a lower monthly amount.
Another item that can help get a mortgage loan even with student loan repayment is to improve the credit score. This will be one of the main points to be considered in the approval and even the in deciding the interest rate of the loan. To read the article, click on this link: [http://www.nationaldebtrelief.com/get-mortgage-despite-student-loans/