Posted on: 11th Apr, 2010 09:30 pm
I want to get a home loan for about 96,500.00. i have a gross mothly income of 2,800.00 plus 800.00 totaling 3,600.00. I only have a car loan payment for 540.00. I have too other small loans one for 141.00 and the other for 41.00. I can pay off the small loans would it be advisable to pay them off or just keep on paying them. What would better sell me as a potential investment on the eyes of the lender
Thanks
Thanks
You will have to contact the local lender and apply for a loan and get pre-approved for it. While you apply for a loan, the lender will check your credit report, your income and financial stability, debt to income ratio, etc. and then approve you for a mortgage. If you pay off some of your loans, then it will have a positive impact on your debt to income ratio and credit report. If you have a good debt to income ratio, then you'll have a higher chance of qualifying for a loan.