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Student Loan planning home purchase

Posted on: 15th Dec, 2010 10:47 am
I have a huge student loan ($75k) and spouse ($175K). I have only 3 months of foreberance left on my loan which I started today. Spouse however has flexibility with their forebearance. I am in process of paying off all our credit card debt so the only people we owe are for our student loans, this will be done in 3 months time. Does it make since to do that in the next 3 months (trying to pay off debt before student loans are due) or to use that foreberance time (3months) for when we want to purchase a house (in 2011)? I was told if loan is in foreberance then it won't be counted against me when trying to apply for home loan.
Hi sdnelms!

Welcome to forums!

As far as I know, if you're in forbearance, the lenders may not be ready to give you a mortgage. In my opinion, you should use the forbearance period to pay off as much dues as possible. Once you start paying off the dues, it will have a positive affect on your credit report which will make it easier for you to get a mortgage in the long run.

Feel free to ask if you've further queries.

Sussane
Posted on: 15th Dec, 2010 06:51 pm
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