I Need To Pay Off All My Other Expenses Before I Can Apply For A Home Loan?
This is a first home buyer myth. And it’s not true! You can still secure a home loan if you have an existing student study debt,
or a car loan.
When a lender is assessing your ability to service a loan, they certainly look at your current expenses such as any outstanding loans or credit card limits – but just because you might have one or both of these expenses, does not mean you won’t get your loan approved. Of course the less debt you have will mean more surplus income to enjoy your new home and perhaps make improvements to it faster with your cash flow.
And the bank may lend you more if you do not have other personal debts to service, but everyone’s situation is different so we need to look at your situation and can run your numbers through our software to gauge your loan limit with or without the debt in place.
Contact us today to have a chat about whether you can start looking now.