Clear away any debt that is in your way
January 14, 2010 2:28 pm Employed Persons, First Time Home Buyer, Interest Rates, Pre ApprovalOn my last blog post I mentioned that clearing away debt is a good (and common) step to take before getting your first property.
The reasons for such actions are two fold.
-Firstly you can help out your debt ratios. In a previous blog post I explained that two specific ratios determine how much you can borrow. By paying down some of your debt you can increase the amount of money the lender will be willing to lend you.
-Secondly it is a great idea to pay down your debt because you will likely have some new purchases to make your property a home.
I recommend that you speak with a quality mortgage professional to determine how to best pay down outstanding debt so it helps you achieve your dream.
