The housing market is one area that weathered the COVID-19 storm well. In fact, 2021 is expected to be a big year for home sales. However, borrowers with student loan debt will find buying a home to be more challenging than those without it.
Difficult, but certainly not impossible.
According to the National Association of Realtors, nearly 1 in 4 homebuyers in 2020 had student loan debt. Buying a home is possible even if you have a “substantial loan balance,” says Lamar Watson, a financial planner in Washington D.C.
Credit card debt, an auto loan, and other regular expenses can add to the challenge. That is why potential homebuyers may want to consult with a financial planner or advisor before applying for a mortgage. Their advice could save borrowers a lot of aggravation . . . and money!