We also have a car loan that will be payed off in 3 years. Does our debt need to be payed first befor they look at approving us for a loan. We have steady income.
In Minnesota
2007-03-29 17:34:32 · 4 answers · asked by LuvnLife 3 in Business & Finance ➔ Renting & Real Estate
It's not with debt consolidation, already tried that first and learned the hard way. We went to a bank are credit is so so could be alot better but we are working away at it!
2007-03-29 17:52:29 · update #1
The amount of this debt would probably have little impact, but the circumstancing behind it may. If you wisely consolidated debt into a loan with lower interest and better terms, and your history is good, then you should be fine as long as your debt to income ratio is not too high. If your "loan" is actually a negotiated consolidation plan, you would likely be viewed as a substantial credit risk.
2007-03-29 17:42:22 · answer #1 · answered by Rob D 5 · 1⤊ 0⤋
If, you are current with your Bills then it good. Banks do not loan money to people with not debt. They loan money to people in debt and show they can handle debt!!! :-D
Yea, I thought it was weird too. But a person that can pay cash all the time, really has not proved they can manage debt.
Learned this when working in Real Estate and working with the Banks.
BUT!!!!!! The bank will take into consideration what you owe and what they feel you can pay on the loan. Really, this probably for your benefit. Go to the bank first and get "Pre-Qualified" Then you can look at houses the bank loan you money for, instead of waisting your time looking at a dream. In time you move up as your first house have "Equity"!
2007-03-30 00:45:22 · answer #2 · answered by Snaglefritz 7 · 1⤊ 0⤋
Be sure your debt to income ratio is good. If you have been paying on your loan on time most lenders will accept that as good payment history. also there are so many factors that go into quailifying for a home loan, and there are many different loans out there, so surely one of them will meet your needs, just keep in mind the more issues you have, the higher your interest rate may be...so try to keep your credit squeeky clean and use your credit cards as little as possible, i know for a fact that lenders only want to see your cards charged up to 1/3 of the available credit limit, otherwise this reflects negatively to the underwriters..also alot of times the real estate agent will tell you certain things are accepted, and even somtimes the mortage broker or lender will tell you certain issues are resolvable that may look different in the eyes of the underwriters...so keep your credit in the best shape you can..thats about all you can do...and dont give up just keep looking until you find the loan that is suited for your needs.
2007-03-30 12:03:00 · answer #3 · answered by shan 2 · 1⤊ 0⤋
$10k personal loan? Debt of only $10k is pretty minor, actually. Some people purchase with $25k in credit card debt. As long as your car isn't a new purchase, that's not bad either. But it would be good to get most of it paid off, of course, lowering your debt to income ratio.
If you and your husband have 2 year steady job history, good credit, pay your bills regularly, and some $ in the bank, you are fine.
2007-03-30 00:40:20 · answer #4 · answered by CJ 3 · 0⤊ 0⤋