How do your student loans affect your mortgage?

By the end of 2012, the average student loan debt was $27,000. That's 5% higher than it was in 2010 - certainly not good news for people trying to finance their educations right now! In fact, most people will take several years to pay off all of that debt. But is it also bad news for people trying to qualify for a mortgage? Specifically, will your student loan debt stand between you and your dream home?

It doesn't have to! If you've read the mortgage advice from the real estate experts at Realtypin.com, you know that lenders will evaluate all of your debts (like your student loans, car payments, credit card bills, etc.) before they approve your mortgage application. So, if you have a ton of student loan debt hanging over your head, it may take a little extra planning ahead of time to get your mortgage application approved, but it doesn't have to be impossible.
Here's what you need to do:

-  Make your payments consistently
As frustrating as it may be to write that check every month, it's the best thing you can do! First, by making your student loan payments every month, you're showing a mortgage lender that you're responsible. In fact, it can even give your credit score a boost! If you miss even one payment, a lender could have reason to believe that you'll miss mortgage payments - and deny your application! As an added benefit, every time you mail off another check, you're paying down your debt. That means you'll have less and less debt that will count towards your debt-to-income ratio when you apply for a mortgage - which increases your odds of getting approved.

-  Pay more than the minimum
Anytime you get a chance to pay a little extra on your student loan debt - like when you get a bonus at work or a tax refund check - do it. Remember, the goal is to get your debt amount as low as possible before you apply for a mortgage!

-  Resist the urge to refinance
There are lots of offers out there to refinance student loan debts, but instead of opting for the "quick fix", keep your eye on the big picture. If you refinance, you'll have to pay closing costs on a new loan (and that's money you could have put towards paying down the debt instead). Plus, refinancing often means extending your repayments - which means paying more interest in the end. Instead of paying more in interest, take that money and use it to pay off the debt itself. You'll thank yourself for it in the end!