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

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.

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2329 E Bowker Street Phoenix, AZ 85040

$460,000

4 Beds

3.5 Baths

3,073 SqFt

Status Active

MLS # 6687666

Property Type Single Family Residence

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Here's a great opportunity to own a large 4 bedroom 3.5 bathroom home in an amzingly convenient Phoenix neighborhood. Features include: Tiled floors Large kitchen with tons of counter and cabinet space, Gas stove, built-in surround sound in family room, loft and patio, large covered patio, fireplace, huge master suite, Built-In BBQ area. The neighborhood features mature trees, parks, playgrounds, a basketball court and a community pool! home is located just minutes from just about anything you could want or need. There's restaurants, easy freeway access, job opportunities, golf, hiking and more just minutes away. You'll also be close to Downtown Phoenix, Sky Harbor, etc. Hurry and take a look! *The sale may be subject to Court approval.

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11865 N Allegro Road Maricopa, AZ 85139

$460,000

3 Beds

2 Baths

1,440 SqFt

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MLS # 6684957

Property Type Single Family Residence

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Nearly 5 acres of fenced horse property with a site built metal frame block stucco home! Home has recently been upgraded with wood-look tile flooring throughout! Spacious bright kitchen, includes all appliances & large breakfast bar w/storage overlooking living room! Primary bedrm & bath have jetted tub, remodeled vanity, walk-in & secondary closets. Guest bathrm has matching remodeled vanity. Huge laundry rm connects to primary bath w/door provides privacy. Key items include: 400' deep well & 2 neighbors pay for water usage, 45x36' concrete slab ready for supersized garage, gravel driveways, storage sheds, new water heater, watersoftner, fans thru out, full covered front patio, newer exterior paint & 7 pine trees w/irrigation. All this in quaint Hidden Valley surrounded by mountains!

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5843 W Crocus Drive Glendale, AZ 85306

$460,000

4 Beds

2 Baths

2,130 SqFt

Status Active

MLS # 6686851

Property Type Single Family Residence

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Beautiful home in highly desired area featuring spacious split floorplan, large bedrooms, newer kitchen cabinets with granite, eat-in kitchen nook, formal living and dining and large family room! Newer light fixtures, ceiling fans, covered patio and a private pool for entertaining in hot AZ! Plenty of parking space, extended driveway, 10' RV gate with concrete pad for your toys and much, much more!

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854 S Cerise -- Mesa, AZ 85208

$460,000

4 Beds

2 Baths

1,769 SqFt

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MLS # 6686531

Property Type Single Family Residence

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Highly sought after 4 bedroom single level floor plan rarely on the market. HVAC replaced in 2019, Water Heater in 2023 Sstainless steel appliances plus washer & dryer convey. Neutral Two Tone Paint Throughout home. The 2 car garage has epoxy coated floor. OLD REPUBLIC Home Warranty in place & transferrable to Buyer. This home has lots of upgrades including granite kitchen counter tops, tile floors in all the right places, ceiling fans throughout, all appliances included, desert landscape in front yard & paver hardscape with synthetic grass in rear yard for easy maintenance. This is a gr spacious single level home located in a gated community within close proximity to nearby schools, city park as well as shopping, dining, medical center & easy freeway access. This is one you have to see

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