Credit card debt levels
Be very careful with your credit card debt levels. Ideally you want to purchase items with your credit card and make full payment each month. No late payments.
Buidling up large credit card debt levels is not a good thing. It can place a downward negative trajectory of accumulated long term high interest debt. The larger your debt balance becomes the more difficult it will get to pay it in full. The credit card companies are happy because they are making lots of money on the interest charges.
Challenges
High credit card debt levels can negatively affect your approval rating when applying loans.
The larger your monthly debts the more income you will need to get approved for a mortgage. Lenders look at your total monthly debts. They add it the mortgage payment amount and compare it to your income. If your income is not strong enough to support all the monthly debt payments your mortgage application could be declined.
We always recommend that you contact us ahead of time and let us help you prepare for the time when you apply for a mortgage. At Trusterra Mortgage it is our goal to help our clients understand their financial and debt situation. We will advise and guide them on next steps to take to improve their credit strength and to prepare themselves for applying for a mortgage loan in due course.
Work with a Mortgage Professional
Based on our consultation together we will decided and suggest to you if its time that we go through a proper mortgage application, part of it being to pull your credit report and anyalyze it. By pulling your credit report we will see everything that is being reported by credit bureau and will let you know what’s in it. Some times people don’t realize that their are old information still on their reports; for example, a debt that they paid in full still shows up as active in their credit report. This process allows them to rectify and update their credit reports, which in turn will make it better and to some extent easier for the lender to review and approve their mortgage application.
In conclusion, we recommend that you contact us and ask any questions you have. Share with us your real estate investment plans and aspirations. We will, to the best of our ability and long-time industry experience, provide professional advise and guidance to you.