05 Nov Borrowing, And Loans: 5 Key Areas, To Consider
In the vast majority of cases, individuals need to take advantage of mortgages, and/ or, other forms of financing, in order to be able to purchase, their home. Since, for most of us, the value of our house, represents our single – biggest, financial asset, wouldn’t it be helpful, to proceed, in a more prepared, knowledgable manner, in order to make the process, simpler, easier, and far less stressful? One of the key factors, that, impacts the procedure of obtaining the needed and necessary funds, is ensuring, you optimize your credit – worthiness, to the best of your abilities/potential. With that in mind, this article will attempt to consider, examine, review, and discuss, 5 key areas of consideration, that, might, make your pursuit simpler, and easier.
1. Credit cards: How you have handled your credit cards, from a financial responsibility, perspective, has a huge impact, on whether, you will be able to obtain the necessary financing, needed, to buy this property! Lenders, generally, use specific parameters, including, proportions of your overall income, to debt ratios. They have one, that, limits the amount of mortgage, they might grant, and, another, that weighs one’s overall debt. In addition, the quality and level of your Credit Rating, is a relevant factor, indicating, how you have previously handled debt, factors into. It is wise, to avoid any new debt, in the period, leading to applying for a mortgage, and, to pay – down, your existing obligations, to the best of your ability!
2. Other loans: Other loans, to consider, and address, include, car/ automobile, unsecured, and other lending types. When possible, reducing the total amounts, you owe, make securing a mortgage, simpler, and more possible!
3. Lines of credit: Do you have any lines of credit, either, which you have existing debts, or, simply, available, to draw upon? It is wise, to reduce, as many of these, as possible, in advance!
4. Handling debt: How one has handled previous debt, is a significant factor, when it comes to finance the purchase of a house. While, you can’t change the past, it is often wise, to take some time, and address these, before you proceed, to search, for that home, of your dreams!
5. Know, and protect, your Credit: Several months, before you begin your quest, obtain a copy of your Credit Report. Check this, carefully, and thoroughly, this document, and be certain, there aren’t any errors, etc. In addition, discover your current Credit Score, and, discuss, with a recommended, professional, mortgage banker or broker, and/ or, Credit Repair Specialist, for their recommendations, suggestions, and ideas. Understand, the quality of your credit, often, becomes, either your best friend, or, might haunt you, for a considerable period of time!
Be prepared, and proceed accordingly! The more you know, and understand, and your willingness to proceed with a high degree of personal financial discipline and responsible behavior, the better off, you will be!
Richard has owned businesses, been a COO, CEO, Director of Development, consultant, professionally run events, consulted to thousands, conducted personal development seminars, for 4 decades, and a RE Licensed Salesperson, for a decade+. Rich has written three books and thousands of articles.