Should You Wait to Buy a Home Until You’ve Paid Off Your Debt?

A young man recently asked me a question I hear often:
“Chris, should I wait to buy a home until I’ve paid off all my debt?”

It’s an excellent question—and like most good questions in real estate and life, the answer is: It depends.

So I asked, “Tell me more about your debt… and your income.”

Turns out his only debt is a student loan—just shy of $70,000.
His income? Solid. Stable job. Good prospects. And even though it’s not in the field of his degree, he’s got steady footing.

Here’s the advice I gave him—advice you may find helpful, too:

Step 1: Get Prequalified

Before you make any decisions, go through the process of getting prequalified for a mortgage. Find out:

• What kind of loan you could qualify for

• What the interest rate might be

• How much house you could afford

Armed with this info, you’ll have clarity on your options.

Step 2: Consider the “Five-Year Rule”

If you’re confident you’ll be staying in your current town for at least five years, it may make sense to buy—even with student debt.

But if you're unsure about staying put?
Then the strategy shifts. It’s not about if you invest, but what you invest in.

Step 3: Think Like an Investor

If there’s a chance you’ll relocate in the next year or two, a single-family home might not be the best move.
Instead, consider:

• A duplex or four-plex, which you could rent out down the road

• Continuing to rent while you save and build your reserves

• Staying active in the market—learning, watching, and positioning yourself for the right opportunity

Bonus Tip: Keep Learning

This young man is interested in real estate, which is fantastic. No matter what path you choose, stay curious.
Read books. Study the market. Think long term.

Bottom Line:
You don’t have to be debt-free to buy a home—but you do need a clear plan and a long enough runway to let the investment make sense.

Want to talk it through? I’m always happy to chat.
Email me anytime at www.ILoveHomerAlaska.com