Which is the smarter move?
I plan to buy my first studio type apartment in a few months and I am torn between paying off my student loans or use my savings toward a down payment. What move will give me a higher chance of getting a loan? is a higher down payment favorable or lower DTI? Should I talk with a loan officer to get advice? by yo773 from Atlantic Beach, Florida. Jan 11th 2023
Dave Skow (daveskow)
#15 ranked lender in Washington - 455 contributions
yes - get pre approved and ask your loan officer this question ......my guess is that your student loan payment is realtively small and wont make a large dent in the DTI so the funds being used for the down payment are likely the best bet .......if your DTI is high or on the edge or the ratios - paying off the SL might be needed
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions
I suggest reaching out to a local mortgage broker in your area. Give them a full application. Then, seeing what you have to work with, they can zero in on the answer to that question based on your personal situation. I lend in MN, IA, ND, SD, and WI. Find me at FirstTimeHomeBuyer-MN.com, although I do all loans, not just first time buyers. | Cambria Mortgage | NMLS 274132 | (651) 552-3681
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