I am in the process of obtaining a mortgage. I have one more outstanding debt o pay before I qualify for one. relatives are telling me to pay it at closing because that's how they done it. My broker told me to pay the debt first. which one is current? What do you guys reccommend?
2007-04-08 16:17:27 · 2 answers · asked by KinWin 5 in Business & Finance ➔ Renting & Real Estate
Different loan programs have different rules such that not every loan can include outstanding debts. I suggest you ask your mortgage broker if it cab be included in your loan. If so, go for it. But remember, if you are getting 100 % financing, the appraisal would have to come in at a value of the house plus the outstanding debt. If you are getting a government insured loan, forget the whole idea and just pay it off beforehand.
2007-04-08 16:57:16 · answer #1 · answered by linkus86 7 · 0⤊ 0⤋
If you have an outstanding debt you probably have to pay it before you qualify for a mortgage. You don't pay it off at a closing when you are the buyer.
2007-04-08 16:35:46 · answer #2 · answered by Anonymous · 1⤊ 0⤋