3 Different Types of Loan That Will Negatively Impact Your Ability to Get a Mortgage

3 Different Types of Loan That Will Negatively Impact Your Ability to Get a MortgageA 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

5610 W Willow Ridge Drive Laveen, AZ 85339

$447,990 - 4Br/3Ba -  for Sale in Estrella Crossing, Laveen
New
$447,990
4 Beds
3 Baths
1,912 SqFt
Status Active
MLS # 6683276
Property Type Single Family Residence
Price Type --
Beautiful Brand New Home in a Highly Desirable Central Location - Featuring countless upgrades such as 9' ceilings, Shaw - Milan - Surf 17x17 Tile, Granite countertops in the kitchen. Whirlpool Stainless steel appliances. White cabinets. Energy-efficient features throughout, Programmable thermostat, gas heater, gas range. Spacious walk-in closet in owners suite. Front yard landscaping, covered patio in the backyard. Spectacular Mountain Views! Minutes from downtown Phoenix in a master-planned community featuring walking trails, greenbelts, neighborhood parks and playgrounds. Conviniently located off the Loop 202 and near schools, shopping and dining!

11496 W Arron Drive Youngtown, AZ 85363

$447,900
3 Beds
2 Baths
1,795 SqFt
Status Active
MLS # 6655387
Property Type Single Family Residence
Price Type --
3 bedrooms, 2 bath, and all of the space you could imagine makes this floor plan the perfect home for you! This new home comes filled with upgrades including a full suite, stainless steel energy-efficient kitchen appliances, beautiful granite countertops, stunning wood cabinets, designer light fixtures, and an attached two-car garage. The Prescott floor plan also showcases a private master suite complete with a walk-in closet, as well as a spacious kitchen with walk-in pantry, fully fenced backyard, covered patio and front yard landscaping. As an added bonus, this home has a separate den off the entryway, giving you space for a formal dining room or home office. Whatever your heart desires, the Prescott is sure to have it! Enjoy the view of the White Tank Mountains from your NEW home!

15311 W Dreyfus Street Surprise, AZ 85379

$447,900 - 4Br/3Ba -  for Sale in Marley Park, Surprise
Open House
$447,900
4 Beds
2.5 Baths
2,182 SqFt
Status Active
MLS # 6628799
Property Type Single Family Residence
Price Type --
Welcome to one of the most idyllic communities in Surprise, original Marley Park. The community pool is around the corner, and one of 18 unique parks is right out your door. Don't forget the manicured rolling grassy areas that you are welcome to enjoy... without the maintenance. The calendar is full of events all year round, with a ton of activities for the kids. Walk to one of the top-rated schools in the area (.6 mi), while enjoying the craftsman architecture and mature trees. This 4 bed/ 2.5 bath home is one of the original models. ALL appliances included! Downstairs you'll find formal dining space, an open kitchen, granite counters, and plantation shutters. Primary bedroom is on the main level, with three bedrooms upstairs. Less than 5 min to the 303 and Prasada shopping

17642 W Colter Street Litchfield Park, AZ 85340

$447,805
4 Beds
2.5 Baths
1,960 SqFt
Status Active
MLS # 6666776
Property Type Single Family Residence
Price Type --
Up to 2% of total purchase price towards closing costs incentive offer. Additional eligibility and limited time restrictions apply. MLS#6666776 July Completion. Discover the Harlow at Allen Ranches: a spacious 1-story layout spanning 1,960 sq. ft. with 4 beds, 2.5 baths, a 2-car garage, and a study. It's the largest among the single-story options, ensuring satisfaction. Step into the foyer leading to a dreamy home office. Explore further to find an open kitchen, casual dining, and great room space. Embrace Arizona's beauty from your own outdoor haven. The owner's suite boasts a private bath with double sinks and a walk-in closet, offering an ideal retreat. Design options include: upgraded gas range, wood look 6 x36 wood look plank, shaker style cabinets, and custom tile backsplash