Denied for a Mortgage

[Udy Ekanem]

Hello BP,  

Just came across the site a few days ago and I'm grateful I did because I've learned a lot already.  Tried to pre-qualify for a mortgage today and was denied.  I have a lot of student loan which is my issue.  I'm really excited about getting into the real estate industry but I've hit a road block today.  I have some money in my 401k that i can take out but I'm not sure if this is the right decision.  Also I don't really want to mix business with my family so not to worry about messing up relationships. 

Please advise, Udy

[Andres Piedra]

How many lenders did you speak to? I would go with three. If they all claim your DTI is too high, then I would consider reducing my debt before getting into real estate. I'm sure you've got a solid personal financial plan in place and the student loan is just a pain. My wife has the same issue. But, if you don't, I would not recommend real estate investing just yet. I would make sure I am solid with personal finances first.