Massive Debts and Your Mortgage
Thousand, no, millions of people have applied and are applying for mortgage loans and you want to apply to but do not know the first thing about applying for one. Now that cluelessness could pose as a problem since there are some factors that could prevent your loan from being approved. You could try going to a mortgage broker since that person could go a long way into helping you get a mortgage. But there is only so much a broker can do for you if there are already some things that lenders see as a red flag in your records. That is right; you may already have been doing something for years that will affect your chances of getting a mortgage now.
One thing that you have on your financial records that may cause your loan to be junked is if you owe massive amounts of debt. Well, do you? You can always check this now. The significance of this dent thing is that when you apply for a loan, you have to show the lenders proof that you can pay them since that is their money that they will loan you. See that word “loan”? That means you have to pay it back and you will need sufficient funds every month in order to make payments or you might as well not get a loan at all. If you earn a huge amount every month, that is well and good. But what if you have big debts to go along with your big salary? Now that is the big question. Most of the lending bodies out there would really want to see that your debts amount to no more then 20% of what you make annually. They will not lend you money if it looks like you can not afford to pay back your debts since getting a loan means you just added a substantial amount to that debt that you already have.
So if you want to get a loan, check your financial records and see if you have bills that need paying. You want the mortgage; pay off your debts first.