A good credit rating is built on a number of financial factors including paying your bills on time and the length of your credit history, but loans can also be a source of bolstering your credit score in a positive way. While this means that loans can actually be a good thing, there are also the kinds of loans that can have a damaging impact on acquiring a mortgage. If you’ll soon be pursuing your own home purchase, here are some loans that may have a negative impact.
Borrowing For Education
When you are young, student loans are an ideal means of paying down your debt and developing a positive credit history. However, if these loans are left to linger they can have a marked effect on your chances of a mortgage approval. Since paying back your student loans will be one of the first times in your financial life that you’ll be able to prove your reliability, you should ensure you pay them on a consistent basis in order to lower your overall debt-to-income ratio.
Credit Card Debt
Many people don’t think of the purchases that go on their credit card as loans, but the money on your credit card does not really belong to you until it’s paid off. While credit cards can be a great boon for establishing your credit in the early days, if you rack up a lot of credit card debt and do not pay your minimum payments by the due date, it will cause a considerable dip in your credit score. In addition, taking on too many cards can be a negative signal to lenders.
Payday Loans
In recent years, payday loans have sometimes been broken out separately from other loans on a person’s credit report. However, unlike many other types of loans, payday loans can be seen in a bad light by lenders because they can be indicative of someone who’s experienced significant financial setbacks, which would negatively impact their ability to pay a mortgage. While some mortgage lenders will not decline an application due to payday loans, some have already started to take this step.
Acquiring loans can be a good means of developing a credit history, but there are types of loans that may look bad on your mortgage application and won’t be of service if you can’t pay them off consistently. If you’re considering submitting a mortgage application, give me a call for more information – J.P. Cook – 602-320-4253.
Click Here to See What Your Home is Worth
13588 W Boca Raton Road
Surprise, AZ 85379
$545,000
5
Beds
3
Baths
3,042
SqFt
Status
Active
MLS #
6777249
Property Type
Single Family Residence
Price Type
--
Spacious 5 bed, 3 full bath home on premium lot! large 3 car garage with epoxy flooring and cabinets with work bench. New quartz counter tops and backsplash. Backyard has nice grass area, huge covered patio, and gated play pool. Outdoor kitchen has grill and sink. Guest bedroom downstairs. Master and 3 other beds upstairs with loft area. Low HOA neighborhood close to schools and walking distance to shopping.
3532 W Warren Lane
Anthem, AZ 85086
$545,000
4
Beds
2.5
Baths
2,140
SqFt
Status
Active
MLS #
6775960
Property Type
Single Family Residence
Price Type
--
Beautiful private home in the sought after Del Webb community. New in 2022: A/C, first level luxury vinyl flooring, new carpet on second level, fresh paint throughout, fireplace in family room, granite counters, white cabinets. Oasis backyard has a pebble tech pool with beach entry, desert front & plus synthetic grass rear. Very private yard siding only single story homes and backing one of the largest lots in Anthem. Enjoy all the resort features of this major master planned subdivision. Easy I-17 access.
19550 N Grayhawk Drive Unit 2055
Scottsdale, AZ 85255
$545,000
2
Beds
2
Baths
1,311
SqFt
Status
Active
MLS #
6780489
Property Type
Apartment
Price Type
--
Situated within the guard gated Talon Retreat in Grayhawk, this recently updated 2-bedroom, 2-bathroom end unit condo offers an open great room floor plan with McDowell Mountain views from every window. The kitchen has stainless steel GE appliances, granite countertops, subway tile backsplash and wood flooring. The primary and guest bathrooms have also been thoughtfully upgraded, adding to the modern charm of this home. Step out onto one of two balconies and take in the morning sun and beautiful mountain views. An attached garage has direct access inside the unit offering convenience and comfort. Upgrades in the last 5 years include interior paint and countertops throughout, new kitchen appliances, new washer and dryer, new window coverings, new fireplace surround, new wood look tile floors in kitchen, laundry room and bathrooms, new carpet, new baseboards throughout, new plumbing fixtures and lighting fixtures, new water heater, Nest thermostat and NAC water conditioning system. Just steps away from this unit is Cachet's community pool, spa and clubhouse, which includes a fitness room. Enjoy access to Grayhawk's additional amenities including tennis courts, walking paths, Grayhawk Park, and two world class golf courses. The Grayhawk community is located in the heart of North Scottsdale within minutes of the 101 Freeway and endless shopping and dining destinations.
2510 E Fountain Street
Mesa, AZ 85213
$545,000
3
Beds
2
Baths
1,855
SqFt
Status
Active
MLS #
6783211
Property Type
Single Family Residence
Price Type
--
Beautifully remodeled home w/ no HOA & the added bonus of energy-efficient solar panels, offering both comfort and cost savings. Nestled in a quiet neighborhood on a large lot, it boasts a detached shop w/AC, an extended covered patio, new watering system, & freshly seeded for winter grass. Inside, you'll find an inviting open floor plan adorned with a tastefully renovated interior. The kitchen & bathrooms feature quartz countertops, Bedrosian tile & flooring, custom cabinets & vanities, & designer hardware & fixtures. Enjoy the charming white washed brick fireplace & additional room for a huge pantry, homework room or extra storage space. With easy freeway access & proximity to shopping, dining, & entertainment, this home exudes a lifestyle of convenience & relaxation
