2006-10-27 16:06:54 · 9 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Sure, if your equity is larger than your debts and have a credit history that satisfies the banks. When you build up equity in your house, you can apply for a home equity loan—this should be paid off regularly and not abused (or you will lose all of your equity) but the interest is tax deductible.
2006-10-29 13:28:42 · answer #1 · answered by DrB 7 · 0⤊ 0⤋
When you go to get a home loan, there is an expectation you will have some type of debt. Even if you don't before you get the home, you will definitely accrue it at some point after getting a home, whether for home repairs, a new car, a child or children, etc.
Home loans are often lent on the basis of the debt to income ratio. This means they take everything you have to pay each month, your "debt obligations," like existing loans, credit cards, cars, etc., and compare it to how much you earn each month. The closer the numbers are to equal, the less chance of getting a loan. However, there are so many home loan programs out there now just about anyone can get a home loan.
My suggestion is always this: check with your bank or preferred lender and ask them to prequalify you. This means they will determine up front what they will lend you and how much, so you know how much you can spend on a house. This cuts out surprises and keeps people from getting their hopes up for buying a house they love but can't afford. Good luck!
2006-10-27 16:11:49 · answer #2 · answered by miranywho 2 · 0⤊ 0⤋
yes you can get a loan that covers all your debt, but you have to have better credit than you would if you just got a home loan. Mortgage companies can help you consolidate all your debt, but if you have too much debt when you buy a house the intrest rate will be higher because you are a liability. Take it from me, I just closed on my house today.
2006-10-27 16:13:02 · answer #3 · answered by a_nurse2b 2 · 0⤊ 0⤋
Your question is not clear. You cannot incorporate existing DEBT (is it HOME LOAN type) into the housing loan request.
As long as one's networth is positive and relationship with Bank is healthy and happy, one need not be debt free..
2006-10-27 17:18:13 · answer #4 · answered by Rahul 2 · 0⤊ 0⤋
most financial institutions have some kind of loan that will incorporate your current debts into the house loan. catch is the interest will be higher
2006-10-27 16:21:56 · answer #5 · answered by oldguy 6 · 0⤊ 0⤋
No, you can totally incorporate existing debt. It's called debt consolidation. You just need to talk to a mortgage lending agent. He'll work it out with you.
2006-10-27 16:08:47 · answer #6 · answered by smashley 4 · 0⤊ 0⤋
YES you can but it depends on whether you have good credit. You'd need to get this kind of loan from a mortgage broker, not a bank.
Realize that after you do this, you shouldn't run up your debt again! I highly recommend you listen to the Dave Ramsey radio show or get one of his books to help you get out of debt.
2006-10-28 03:38:21 · answer #7 · answered by Z Z 2 · 0⤊ 0⤋
yes you can, but the question is, if you already have major debt, should you be buying a house?
I would think about paying off existing debt as much as you can before entering into new and larger debt.
2006-10-27 16:28:08 · answer #8 · answered by tokyojanitor 2 · 0⤊ 0⤋
No in spite of the indisputable fact that the guy it really is owed might want to document the debt with the valuables or perhaps as any coverage payouts are in probate, the debt might want to be taken out till now the relations receives the money from an inheritance or coverage coverage.
2016-12-05 07:34:23 · answer #9 · answered by ? 4 · 0⤊ 0⤋