Many students desire to start their independent life after graduating. It’s an excellent tendency among the youth. But, on the other hand, they will hands-down face a lot of difficulties on the way. Shortage of money, lack of support, loneliness, unawareness, and fear of the future are, unfortunately, not the main problems.
Always keep in mind that you are not alone. Your friends are in the same situation. If you don’t believe, we can prove it with the official statistics. Approximately 44 million students in the overall number owe 1.5 trillion dollars in loan debts. This sum of money sounds amazing, but it is a fact. And one even more terrifying statistics is that more than 31 billion dollars of their loans are overdue. Of course, you can become even more worried, but don’t hurry with conclusions.
There exist some ways which can be very helpful for you. Just follow the next guidelines.
Keep track of all payments!
This step is especially important for lenders. They work with very serious borrowers who are aware of all processes of payment. But don’t panic if you are not able to describe the payment history in details. We’ll tell you about a small trick. A mortgage lender usually pays attention to your recent purchases etc. That is why it’s high time for you to write down all payments. Moreover, you should pay everything on time and if it possible refrain from expensive shopping. Oh, and you can check the balance right now to make sure that you don’t have any debts.
Consider down payment assistance and government help!
Very often students get stuck in doubts, thoughts with millions of questions. You can ask for help at any time. There exist specialists who are responsible for solutions to these questions. We can eagerly inform you and name some of them. But don’t limit with only such loans because there are much more federal, state programs, etc. USDA loans, FHA loans, VA loans, Student Loan Cash-Out Refinance, Student Debt Payment Calculation are the best assistance. We single out five most reliable programs, which are really popular among students. In any case, all governments are only interested in your money, it means that they also want to help you to become a happy resident of a new building.
Credit score is not the last factor!
Some people always check credit scores, while others even don’t know the current balance. In reality, it’s better for you to control this situation. If you are a little bit confused and don’t know what is going on, we will help you and reveal statistics. You may rely on FICO credit scores, which range it from 350-800. In plain English, the higher score you have — the better chances to get approval from lenders are. As to credit bureau, these specialists find out all necessary information about your payments, debts, loans and also measure possible risks for them and you. We can recommend you to use a high percentage of credits and, what is even more important, check credit reports as often as possible.
Be pre-approved for a mortgage!
Homeowners-to-be think they have to find the ideal house and only after that ask for a mortgage. Unluckily, it’s a delusion. First of all, you should find a lender and talk to him personally. This person ought to be reliable and helpful at least. The lender will pay attention to such things as proof of income, credit score, proof of assets, your employment, a great number of documents and other materials. But be sure this step may ease the whole process.
Refinancing can be necessary!
At the primary sight, it seems impossible to refinance students’ loans because you don’t have extra money. However, there are some ways how to do it faster. The best way is to consult with lenders about advantageous interest rates. One of the main mistakes is that inexperienced students agree with the first lender they meet. You have to compare their offerings and choose the best one. But, in return, every lender may ask your debt-to-income, credit profile, the flow of payments, etc. In addition, you will sign some documents as the usual procedure.
Always control debt-to-income ratio!
Debt-to-income ratio is your monthly correlation between an amount of money the person earns and an amount he/she spends. There exists a special scheme on how to figure it out. It’s not a secret for anyone that lenders take into consideration this ratio in making decisions concerning the interest rate you want to have. Very picky specialists may mind every detail: if you have enough money for living expenses, products, entertainment, etc. You should try to reduce this number. The most effective ways are: earn more money, repay all debts or save as much money as you manage.
Think about the credit card utilization!
You might be surprised, but this step is one of the main factors in getting higher chances to get closer to dreams. Your aim is to have credit utilization less than 20-30%. It’s really essential to lower it. Here we point out the most useful tips on how to achieve the result – cut down on expensive purchases, pay off the balance, don’t throw old cards and set your personal limits.
Use a personal loan in order to consolidate it with a credit card!
Yes, you can do it. This operation requires a lot of efforts, but you need to head for the goal. The most important step is to pay back the whole balance and then deal with the mortgage. But if you can’t do it due to some circumstances, it’s wise to consolidate a personal loan with a credit card at lower interests. Moreover, this action may help you in solving all the previous seven processes. If you don’t have a credit card yet and would like to buy one, make sure to get a hang of credit card jargon to avoid confusion.
To sum up, we can advise you to be confident and persistent in your dreams. Keep in mind that you can always find ways how to overcome difficulties even with some debts and loans. Just follow all guidelines and buy the best house!
My name is Alexia Wolker, I am a blogger and work as an editor. I have a Master’s Degree in literature and love both reading and writing about books and literary topics. I also help students with their literary assignments – articles, essays and summmaries of books, my works you can see at freebooksummary.com website