To buy a Clay home, figure out your debt to income ratio.You may wonder if you should pay off your student loan debt before purchasing a Clay home. For some, this may be necessary, for others it may not. Sometimes it could be beneficial to at least pay the debt down a bit before applying for a mortgage. It all depends on the numbers and your goals.

The most important consideration when deciding what to do is figuring out your debt-to-income ratio. This is the amount of your monthly income that has to go toward paying off debts. These can include car loans, credit card debt, and student loans. Know that there is both a debt-to-income ratio that has to do with estimated housing costs, known as front-end, and other debts, known as back-end. Most mortgage lenders want to see the back-end debt-to-income ratio of 36% or less.

Make a Budget to Figure out if Now Is the Time to Buy Clay Real Estate

Once you do the math, you can have a better idea of if you should pursue purchasing a Clay home now or wait. If your debt-to-income ratio is not quite where it needs to be yet, you could try a few different approaches. Either work hard on paying off the student loan or to save a larger sum of money for a down payment to lessen the amount borrowed for a mortgage.

No matter the case, if you have student loan debt and would like to purchase Clay real estate, it is best to make a strict budget and stick to it. Cut out all expenses that are not necessary to get your finances in the best shape possible. Say no to cable television. Learn to make your own fancy coffee. Instead of eating out, figure out how to make your favorite recipes at home. You can find lots of recipes online. Rather than buying new clothes, try to find them used. There are some great sites that sell brand-name clothes for low prices. Focus on making a budget with all the necessities. Take the money you save and divide it between paying off student loan debt and saving for a down payment for a house. Having a solid financial base from the beginning will make home ownership much more enjoyable.