clap123 Posted May 14, 2013 Share Posted May 14, 2013 Hi Everyone! I am starting PA school in one month =)..very excited! But I have a question for you guys... My husband wants to buy a house right now, because his Realtor said that it is better to apply before I start school, since my debt (which I think it will be around $130,000- school loans) will show up on my credit report and it will be harder to be approved. Is this true? Did anyone experienced a hard time due to the same thing? Should I do this right now? I wanted to wait because that way I can contribute to the payment in two years when I finish school and I will be working again. I will really appreciate any input you guys have. Thank you! Link to comment Share on other sites More sharing options...
UGoLong Posted May 15, 2013 Share Posted May 15, 2013 That's a tough decision! I do know that it's easier to get a loan while you have a job and don't have a lot of debt. If you have the funds to buy a house now and still afford going to school, I suppose you could consider doing it. You will have to be living somewhere for the next few years, after all. On the other hand, PA jobs are not always in the town you want to live in and it might limit your options once school is over. And, if the stress of setting up a house and paying a mortgage (I assume you don't have one now) is going to put your family over the top, it may pay to minimize the stress. You'll have a bunch of that as it is! Whatever you decide to do, good luck. You are starting out on a great adventure! Link to comment Share on other sites More sharing options...
djdanx Posted May 15, 2013 Share Posted May 15, 2013 I actually just went through this process. My husband and I couldn't see the benefit of renting and throwing money away anymore. But, there are pros and cons to each, as you know. We thought it would be better to take out a loan before school because, as you said credit will be better. I would base my decision on how long you have to look for houses and get everything finalized before school starts. I looked at houses at the end of March, put an offer in, and only just moved in a week ago due to the shenanigans that always present themselves during the homebuying process. It was very stressful and I wouldn't do it over again unless I had at least 3 months to spend on the process. I'm stressed as it is about beginning school and this has only added to it. Just my two cents. Link to comment Share on other sites More sharing options...
Corpsman2PA Posted May 15, 2013 Share Posted May 15, 2013 Same as djdanx, I went through this last year. I'm not sure how it is on the back end, but like all things, it will depend on your DTI ratio like it always does. We decided to become homeowners last summer while I was still working and before I started school. After we moved in I quit my job and started school 10 days later (in a different state). My advice for you, would be to do what we did (if you're serious buyers): Find a house that is affordable (we're paying less in mortgage than we did for a 1 bedroom apt rent), find one that is in a desirable neighborhood (good schools, low crime), and one that could possibly become a rental if needed. In this way, if you have to take a job somewhere else, you can easily rent it out and not be stuck between a rock and a hard place (and then somebody else is paying down your mortgage). Just some thoughts. Homebuying is beyond stressful, so get ready for that adventure if you haven't done it before. But once its done, its nice. Link to comment Share on other sites More sharing options...
FBIDoc Posted May 15, 2013 Share Posted May 15, 2013 My student loans were not counted against me in the mortgage process...not even included in the calculations...have they changed that? Link to comment Share on other sites More sharing options...
djdanx Posted May 15, 2013 Share Posted May 15, 2013 @FBIDoc, as far as I know the process hasn't changed. They looked at my debt to income ratio and that played a factor in the decision as well as credit score. Have they not made you submit statements for your student loans? How far along are you in the process? If the debt:income is acceptable to the broker/mortgage company, then you may not have a problem being approved for a mortgage. Link to comment Share on other sites More sharing options...
JFarnsworth Posted May 15, 2013 Share Posted May 15, 2013 My advice: buy now. Interest rates are low (and they may not be this good once you graduate), and student loans do play a factor in your loan approval process (at least it did in mine). Since lenders are more cautious now about approving mortgages, if you can swing it, buy a house before interest rates go up and/or housing prices go up as well. Good luck! Link to comment Share on other sites More sharing options...
Moderator ventana Posted May 16, 2013 Moderator Share Posted May 16, 2013 to complex if you are making 250k right now in a job get the house now.... If you are making 28k now, no real benefit from the credit perspective...... BUT interest rates are crazy low and if you can easily float the mortage, taxes, insurance, utlities and repairs (part of ownership) then I would consider it..... Link to comment Share on other sites More sharing options...
mdebord Posted May 16, 2013 Share Posted May 16, 2013 Something else to consider...We had to buy a house right after I got out of school (because of job location). Lenders didn't seem to care too much about the loans, but most wouldn't give us a mortgage because I didn't have any work history for the past two years (because of school). Fortunately we found one that realized my income potential. So, if you've been working, that might be another good reason to purchase now. Link to comment Share on other sites More sharing options...
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