Do I have to pay off my student loan before applying for a mortgage? It doesn’t matter if it’s not overdue!

Many people now rely on loans to buy houses, and mortgage requirements are relatively strict. If there are other loans on the credit report, it may affect the approval of the mortgage. There are many borrowers who have not paid off their student loans when they were in college. Do you want to know whether they must pay off their student loans before applying for a mortgage? Today I will give you a brief introduction.

Do I have to pay off my student loan before applying for a mortgage? When applying for a home loan, the bank will strictly check the source of the down payment before approving the loan, and check the borrower's credit record and borrowing status through a credit check. If there are new consumer loans, credit card installments, etc. 6 months before the home loan, it is often You will be asked to pay off the loan before applying for a mortgage. However, student loans are not consumer loans, and they are earmarked. After the loan is issued, it will be directly transferred to the university's account to pay tuition and miscellaneous fees. Generally, banks will not require the student loan to be paid off before allowing them to apply for a mortgage. Therefore, unpaid student loans will not affect your mortgage application, but there is one condition, which is that it must not be overdue. In real life, there are many examples of mortgage loans being rejected because overdue student loans affect credit. Therefore, borrowers must pay attention to the repayment time of student loans. After the student loan is confirmed for graduation, repayment will begin in the year of graduation. However, there is a 5-year principal grace period. You only need to repay the principal every year within 5 years, and then repay part of the principal and interest starting from the 6th year. Except for the last year, which was repaid between September 1 and September 20, all previous repayments were between November 1 and December 20. Borrowers can log in to the student online service system to check the current period. Repayment limit, and at the end of the repayment date, go to the designated Alipay account balance to add sufficient repayment funds, and the system will automatically deduct the repayment. The above is the relevant introduction to "Do I have to pay off my student loan before applying for a mortgage loan?" I hope it will be helpful to everyone. I have a poverty alleviation loan in my name that has not been repaid, can I apply for a mortgage loan?

Generally speaking, no, because poverty alleviation means that you are a poor household, but being able to buy a house means that you are no longer poor, so you should repay the poverty alleviation money. Will unpaid student loans affect the mortgage loan?

It will affect. If the student loan is not repaid, the borrower becomes overdue, which will result in a bad credit record. The student loan period is 10 years, and the interest rate is based on the benchmark interest rate. The interest while the student is in school is fully subsidized by the state. After graduation, the student has to pay the interest by himself.

Considering that some students may not be able to find employment in time after graduating from school, the country has also set up a two-year grace period after graduation. During the grace period, students only need to pay interest and do not have to repay the principal. However, due to a lack of understanding of the policy, many students think that the grace period means no repayment and no interest. As a result, some overdue repayments occurred.

If the overdue payment is not malicious, you can explain it to the bank and cancel your personal bad credit record. Don’t be discouraged if you do have negative information on your credit report. This information will be deleted from the credit report after a certain number of years. Moreover, as long as the individual is honest and trustworthy in future credit activities, as time goes by, new and good records will gradually be refreshed and replace the old and negative ones. records.

Extended information:

Notes on unpaid student loans:

1. If students borrowing national student loans fail to follow the instructions of the handling bank, If the loan is repaid within the time limit and amount specified in the signed repayment agreement, the handling bank shall charge penalty interest on the default repayment amount.

2. The handling bank will enter the basic personal information and repayment status of graduated students into the basic personal credit information database of the People's Bank of China for all financial institutions across the country to inquire according to law. If the default of graduates with national student loans is serious, it will affect their application to financial institutions for other personal consumption loans.

3. After entering the repayment period according to the repayment agreement, for borrowers who have seriously defaulted on repayment, the relevant administrative departments and banks will publish their names, citizens, etc. through news media, the Internet and other information channels. Information such as identity number, graduation school and specific breach of contract.

4. The defaulter shall bear relevant legal liabilities.

Can I get a loan to buy a house if my student loan has not been repaid?

Can I get a loan to buy a house if my student loan has not been repaid, because student loans and mortgages do not conflict.

1. If you are not in arrears, this will not affect your loan approval, but because you have an outstanding student loan, it may affect your loan limit. If you don't have much left on your student loan, it's recommended that you pay it off in one lump sum to avoid future troubles, because when a bank gives you a loan, it usually checks your credit first. If you find that you still have a loan, you should first calculate and assess your ability to repay it. If your repayment ability is high, the bank is more likely to give you a loan, so it is recommended that you ask for a higher income certificate when you take a loan to buy a house.

2. The policies of each bank are different, so you can consult several banks when applying. According to relevant national regulations, student loan banks will enter students who have repeatedly overdue or maliciously defaulted on their loans into the personal credit reporting system, forming a bad credit record, and will load the information of dishonest students and cooperative borrowers into the personal credit reporting system of the People's Bank of China. Once a bad credit record is loaded into the personal credit system, it will directly affect the application and use of almost all financial products related to financial institutions, such as personal credit cards, home purchases, car loans, etc.

3. It is best to pay off your student loan first, otherwise it will affect your reputation and loan amount. As long as the general provident fund has been deposited continuously for more than 6 months, you can apply for a housing provident fund loan. If you feel that your account is relatively small, you can give the money to the company to pay you, such as a provident fund account. A general housing provident fund loan can get 40 times the loan account balance, and 40 * 6,000 can get 240,000. You can apply for a housing provident fund loan without a commercial loan. This mainly depends on your monthly income level. Generally speaking, the monthly payment on both loans cannot exceed half your income. You can take out a loan to buy a home, but you still have to make monthly student loan payments.

: Most loans are not conflicting and can be processed as long as your loan repayment record is not seriously overdue. The key depends on your salary, because when banks grant you loans, they will consider your ability to repay.