Getting A Handle On Your Bills With A Debt Consolidation Loan
Written by: Victor Bran
If you find yourself overwhelmed in debt, or are considering
applying for a mortgage but your debt to income ratio is too
high, it may be time to consider a debt consolidation loan.
Qualified mortgage companies, such as
http://www.NorthstarFinance.us, offer various loan programs for
individuals who need to get their debt under control. In
addition, under a debt consolidation loan, consumers are much
more likely to save thousands of dollars in interest rates than
if they were to continue paying their high rate credit card
bills each month.
When applying for a debt consolidation loan, you will need to
provide the lending institution with the amount of current debt
load that you are carrying, along with other financial
information, including income, length of employment, etc. In
order for you to qualify, the lending institution will need to
review your credit report. In it, they will look for things
pertaining to your previous credit history, including late or
missed payments, bankruptcy, charge-offs, repossessions, etc.
The fewer of these situations that exist in your credit file,
the better chance you will have of being approved for loan
programs, including debt consolidation. However, if you do have
past credit problems, there are loan programs, which may feature
higher interest rates, that may help you to achieve your goal.
If you are approved, you would likely pay higher rates than an
individual with no past credit problems, but it is a good way to
continue re-establishing your credit.
If your ultimate goal is to finance a mortgage, but your debt to
income ratio is currently too high, then you may opt for a debt
consolidation loan to lower your monthly payments and thereby
make some cash available to put toward a mortgage loan. In order
to get the best interest rates on a mortgage, you will have to
show the lending institution that you have the ability to repay
that loan. A large part of that ability will derive from your
debt to income ratio. If you owe a large portion of your monthly
take home pay, then it will be more difficult to qualify for a
loan. On the other hand, a debt consolidation loan may lower the
payments that you currently have and improve your chances of
being granted a mortgage loan.
Mortgage lending companies, such as
http://www.NorthstarFinance.us, work with applicants to better
help them obtain the perfect loan. Whether your ultimate goal is
a mortgage or simply to have some extra cash in your pocket
every month, a debt consolidation loan may be the answer that
you have been searching for. If you are already a homeowner, it
may be possible to refinance or apply for a home equity line of
credit against your current home. Because you already own the
home that you are borrowing against, the approval process will
be easier than if you were applying for a basic unsecured debt
consolidation loan. If you refinance or take out a home equity
loan, then your home becomes the collateral, or security, for
Located in Florida, http://www.NorthstarFinance.us is a mortgage
company specializing in various loan programs, including
mortgage, debt consolidation, home equity lines of credit, etc.
About the author:
How Do I Qualify for a Loan?
Loans are the single most common source of funding, whether for
purchasing a home, financing a business, paying off debt, or
financing a college education. Before approaching a lender to
see if you qualify for a loan, whether your credit scores...read more
Bad Credit Personal Loan and Bad Credit Loans
Bad credit personal loans are widely available these days. These are personal loans marketed to individuals with a poor credit score or poor credit history. A bad credit personal loan can be obtained through a lender who specializes in bad credit...read more
Mortgage Loans 101: Who or What is Freddie Mac?
Freddie Mac can help you obtain a home mortgage loan.
But while Freddie Mac might sound like a generous uncle, it's
more closely related to Uncle Sam. So what is Freddie Mac, and
how does it help you when buying a home?
Freddie Mac is...read more
Return to Home