Been chatting with some friends lately about mortgages and stuff, and it got me thinking... how do most people handle their student loans when they're trying to buy a home? Like, do you prioritize paying down student debt first to improve your credit score, or do you just go ahead and save aggressively for the down payment instead? I'm kinda torn myself, honestly. Quick poll:
A) Pay off student loans first
B) Save for down payment first
C) Try to juggle both equally (somehow, lol)
Curious how others are handling this!
I went with option C, but honestly, it felt more like a messy juggling act than an actual strategy. When my partner and I started looking for our first home last year, we still had a decent chunk of student debt hanging over us. At first, we tried aggressively paying down the loans, thinking it'd boost our credit scores and make us look better to lenders. But then we realized that without a solid down payment, even great credit wouldn't get us very far.
"do you prioritize paying down student debt first to improve your credit score, or do you just go ahead and save aggressively for the down payment instead?"
We ended up splitting our efforts—making steady, slightly-above-minimum payments on the student loans while putting extra savings toward the down payment. It wasn't perfect, and at times we felt stretched thin, but it worked out okay in the end. Got approved for a decent mortgage rate and moved in just two months ago. Looking back, I think focusing entirely on one or the other would've stressed us out way more. Balancing both was tricky, but doable...just gotta be realistic about what you can afford each month.
I can totally relate to that "messy juggling act" feeling, haha. When my wife and I bought our place a few years back, we did something similar—paid a little extra on student loans but mostly focused on saving for the down payment. Honestly, lenders usually care more about your debt-to-income ratio than just your credit score alone. Balancing both isn't easy, but like you said:
"just gotta be realistic about what you can afford each month."
Glad things worked out for you!
Yeah, lenders definitely zero in on debt-to-income more than people realize. But honestly, I think folks sometimes underestimate how much breathing room you need after buying a house. I've seen friends stretch themselves thin trying to juggle student loans and mortgage payments, and it can get stressful fast. Sounds like you took a balanced approach though—smart move. It's all about finding that sweet spot between paying down debt and keeping enough cash flow to handle life's curveballs...
Yeah, that's a solid point about breathing room. When I bought my place, I still had student loans hanging around, but I made sure the monthly payments were manageable enough that they didn't kill my budget. Honestly, lenders approved me for way more than I felt comfortable borrowing. Glad I trusted my gut and went smaller—life throws enough surprises without being house-poor on top of it.
