Student Debt Putting Future Homeownership At Risk - 47 ABC - Delmarva's Choice

Student Debt Putting Future Homeownership At Risk

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47 ABC - It's not a new concern that student loans are crippling many college grads. But a challenge these young twenty-somethings may not be prepared to face, is not being able to afford a home, even when they reach their thirties.

Realtor Dale King says, "student loan debt factors into their over all debt to income ratio, which greatly affects the loan they can qualify for."

According to the Federal Reserve Bank of New York, the number of people age 25 with student loan debt nearly doubled in the past ten years, and debt rose by 10-thousand dollars. That could mean lower credit scores and less loan offers from banks.

"If they cannot qualify for the loan amount they desire, they may not find a home in that lower amount that's suitable for them," King says.

But experts say there are ways you can help bring your credit score up, and make the home buying process more affordable.

Salisbury University professor Dr. Tyler Clagget suggests not taking out any more loan money than you need. And King suggests not opening additional credit cards, or purchasing new cars. Even a simple phone call about your credit score may help bring it up.

"Obviously an error would not be a good thing if it's not in your favor. You would also learn a little bit about what it would take to correct your credit score for trying to buy a house in another year or two," Clagget explains.

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