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How Do Mortgage Lenders View A Debt Consolidation Loan?


Dragonfly66
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The last post in this topic was posted 1833 days ago. 

 

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Hello. I'm planning on buying a house this summer and was thinking about getting a loan from my credit union to consolidate some credit card debt in order to lower my overall monthly payment. Would this be something that is viewed negatively by a potential mortgage lender? It would be around $13K. I know there are a couple of mortgage gurus on this site so I was hoping they might give me some insight. Thanks in advance.

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Thanks, CV. That doesn't surprise me. I was just curious if they would look at it negatively for some reason, but it sounds like it's just viewed like any other debt.

It might actually improve your score to have the balance on an installment loan, vs. having higher revolving utilization.

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Not an issue - it is better to do this far enough in advance that your credit report has time to accurately update

The cleaner it is on there the easier it is on everyone

You may be asked to draft a letter of explanation because it is a recent transaction

If you are consolidating and saving money simply state that, sign and date.....should be all they need

 

Good Luck

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Not an issue - it is better to do this far enough in advance that your credit report has time to accurately update

The cleaner it is on there the easier it is on everyone

You may be asked to draft a letter of explanation because it is a recent transaction

If you are consolidating and saving money simply state that, sign and date.....should be all they need

 

Good Luck

That was what I wanted to hear. Thank you and everyone else on this forum that responded. I feel much better pursuing this option now.

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