Home Buyers Shouldn’t Sweat Student Loans

Millennial aged home buyers searching for an affordable Franklin County home or Bedford County home may wonder how much student loans will affect their ability to get a home loan. But there's good news from a recent study that shows student loans are not as likely to stand in the way of a mortgage loan as someone might think. As this news update states, TransUnion released a report that buyers between 18 and 29 with student loans do well on repayment and building good credit, both factors in obtaining home loan approval. 

This kind of encouragement is great for young buyers who are ready to move beyond renting, are beginning to start families and are interested in purchasing a property for their growing needs. Student loans can linger for several years after graduation, discouraging would-be home buyers from going very far in their home search. And the college years can be hard on credit scores, leaving post-graduation buyers with too little credit or mismanaged credit. Fortunately, as lenders learn more about millennial home buyers and the differences in their money management versus previous generations, things like student loans are seen as a sign of financial responsibility rather than a burden on the holder. 

The report on student loans and loan qualification is also encouraging for other home buyers, home sellers and real estate investors who have a vested interest in the market economy's future. Mortgage approval despite student loans indicates a healthy balance between lenders and loan owners. Millennials who are able to get approved for a loan support and encourage good economic health, something all parties desire.

As an experienced SML realtor, Deb Beran enjoys helping home buyers of all ages navigate loan approval, credit, affordability and searching for a great home. Young, first-time home buyers can get answers and assurance from a real estate agent like Deb. 

If you are a young home buyer looking in the Smith Mountain Lake area, let Deb Beran Properties know how we can help. We would love to help you buy your dream home.