James V. Hecker

Santa Clarita California

  • About
    • About
    • Privacy Policy
    • Site Security
  • Mortgage Info
    • Buyer Info
    • Seller Info
    • Closing Costs
    • Home Appraisal
    • Home Inspection
    • Loan Checklist
    • Loan Process
    • Loan Programs
    • Mortgage FAQ
    • Mortgage Calculators
    • Mortgage Glossary
  • Properties
    • All Properties
  • Blog
  • Testimonials
  • Contact

Planning to Get a Mortgage in 2017? 4 Reasons Why It’s Time to Start Paying Down Other Debts Now

October 13, 2016 by James Hecker

Getting a Mortgage in 2017? 4 Reasons Why It's Time to Start Paying Down Other Debts NowBuying a home is an ideal investment for many people because not only is it a place that belongs to them, it can also be very beneficial financially. While you may be strongly considering buying a home for these reasons, it’s also important to be in good financial health so that your ideal home purchase is within reach. If you’re currently perusing the market for prospects, here are some reasons you should pay down debt before taking the leap into home ownership.

Good Credit History

The amount of your debt load and whether or not you’re paying off your minimum monthly payments has a considerable impact on your mortgage approval, so ensuring that you have good credit history going into the process is important. If you’ve had hiccups with your credit, make sure you go through your credit report prior to submitting your application to determine where you’re at.

Lowering Your Debt-to-Income Ratio

Whether or not you’ve heard the term, your debt-to-income ratio (DTI) has a significant impact on how much house you can afford. Made up of the amount of your monthly debt payment and current house payment, your DTI should be below a certain percentage as this will enable you to afford a higher home payment each month.

Shifting Interest Rates

Getting a mortgage is one thing, but interest rates add more to the monthly amount you’ll owe. A fixed-rate mortgage can seem like a good idea, but if interest rates are low you may end up paying more than you would on a variable rate, which can be hard to predict. As interest rates are a part of home ownership, having lower debt will enable you to deal with these additional costs.

Finding The Right Home

Putting your money into a home can be one of the best purchases you’ll make, but if you’re unable to afford the home you love, it can be a disappointing fact to face. While there are no assurances that paying down debt will enable you to afford your dream home, it can go a long way towards giving you more options that will fit your budget.

Buying a home can be a money saver in the long run, but if you’re struggling to keep up with your debt payments buying into the market can be more of a burden than anything else. If you’re currently paying down debt and considering a home purchase, contact your local mortgage professional for more information.

Filed Under: Home Mortgage Tips Tagged With: Home Mortgage Tips, Mortgage, Mortgages and Credit

James Hecker

Contact James

Focus Lending Group, Inc.
BRE #00902195 • NMLS #214601
CALL 661.295.7030
FAX: 661.244.4932
james@james4loans.com


APPLY WITH JAMES →

Connect with Me!

Search articles

Rate Quote

  • This field is for validation purposes and should be left unchanged.

Latest Articles

  • 5 Tips for Crafting a Counter-offer That Doesn’t Scare Away a Potential Home Buyer
  • What’s Ahead For Mortgage Rates This Week – March 27, 2023
  • 3 Things That Will Absolutely Kill Your Chances for a Mortgage Approval
  • Mortgage Interest Rate Versus APR: What To Know
  • Navigating A Market With Higher Interest Rate

Previous Posts

Categories

Our Location


27201 Tourney Rd. Ste 200
Valencia, CA 91355

Copyright © 2023 · Powered by MySMARTblog