Struggling with Sky-High Debt-to-Income? Discover the Underground Strategy to Snag Rental Properties Like a Pro Despite the Odds!
Tony:
Great point, Ash. But you know what stuck out to me was he says, my DCI is already dented, but he didn’t say like I’ve been told by a mortgage broker or I’ve been told by a loan officer. So I think what I would do first, Daniel, is just go to a few lenders and give them your current financial situation and let them actually tell you if your DTI is an issue. But what I wouldn’t want you to do is just assume that because you have the student loans, because you have the mortgage from the House act that you can’t get qualified for another loan. So I think the first thing is just go talk, go shop around to as many lenders as possible to understand what the different options are. And as you bring up a good point of the DSCR, but as you talk to more lenders, and we just had Jeff Wegen on episode 5 88 of the Ricky Podcast and he talked about lending and he talked about so many different loans that Ash and I had never even heard of before.
So I think the first and maybe most important step, Daniel, is go shop talk and get the option of what makes the most sense for you. I think the second part of that question is, should I pay off my student loans? I think maybe it depends. If you do go to talk to a lot of lenders and they all say the same thing, like, Daniel, do these student loans are killing your ability to get approved, then maybe it is the prudent choice to pay those down. If you’ve got super high interest rates on the student loans, maybe it is a good idea to pay those down so you can free up more cashflow to get approved. But if the lenders are like, eh, it doesn’t really hurt that much and you’ve got a 2% interest rate, then maybe it is the better decision to go out there and use that money to buy that next deal. So I think there’s some nuance to the question, some detail maybe that we’re lacking, but I just wouldn’t make any moves until I’ve gotten no from multiple about buying that next deal.
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