Deferred student loans might hurt your credit. If you’re buying a home, verify your loan status now to avoid last-minute surprises.

Are your student loans going to affect your homebuying plans? I recently got an update from my lender, and it’s something every potential buyer with student loans should know.

Student loan payments are back. In March 2020, student loan payments were paused due to the COVID-19 pandemic. However, in October 2023, loan servicers started the “on-ramping” process to ease borrowers back into making payments, and that ended in September 2024. Now, student loan activity is officially being reported to the credit bureaus again.

Why it matters if you’re buying a home. If your student loans have been in deferment and you’re thinking about buying a house, this matters. Check with your lender and make sure your loans are marked as current in your credit report. If they’re still showing as deferred, that could hurt your credit history and potentially cause problems when applying for a mortgage.

“If your student loans’ status is still deferred in your credit report, that could hurt your credit history and potentially cause problems when applying for a mortgage.”

The market's still moving—and rates are improving.  If student loans have you rethinking your timing, here’s some encouraging news from the local market. From April 2024 to April 2025, 156 properties sold in Burbank, Glendale, and North Hollywood—just a slight dip from 164 the year before (about 5%).

Home prices are still climbing. Even with fewer sales, home values continued to rise. The average price last April was $1,165,000. This April, it’s up to $1,215,000—an increase of about 4%.

Interest rates are improving. There’s more good news: interest rates have gone down. Last year’s average was 7.242%. This year, it’s 6.709%—a drop of roughly 0.533%. That’s a positive shift for both buyers and sellers.

Whether you’re wondering how your student loans could impact your mortgage or just want to talk through the latest market numbers, I’m here. Don’t hesitate to call me at 818-953-5300 or send an email to brad@bradkorb.com. I’d be happy to help.