People who want to start a new life and a new family will always look forward to buying a new home. This should be easy, particularly if your credit standing is good but what if you've missed a few payments and already have a judgment on your student loans? Student loans already make it challenging to obtain a mortgage but a judgment could make your application way more difficult and could actually affect the success of your loan.
How lenders look at you
Your student loans are not the only consideration your lenders will look at in case you need a loan from them. They will assess the whole picture – your credit history – which will include every single cent you borrowed that has been documented. This will include your credit card loans, car loans, mortgages and every other type of debt you might have.
Your lenders will also consider the cost of the property you're looking to purchase, the type of mortgage and your income. If you've had a judgment on your student loans, this could cause your lenders to sit up and be wary of you. They could either downright refuse you for a loan or hike your mortgage refinance rates.
Should the first scenario occur, you might have to find other means with which to pay off the judgment on your student loans or go and find other creditors that will take you in and give you a loan for a refinance. Should the second scenario hold true, you will get the money for a mortgage refinance loan but you will have to pay your debt off the amount of money you receive.