Consolidating debt into a
If your lender allows you to include short-term debts into your home loan, however, doing so can make your financial obligations more manageable.Not all lenders will allow you to roll your old debts into your new mortgage.Debt consolidation involves combining multiple unsecured debts into one bill, which can be helpful if you’re overwhelmed by an assortment of monthly payments.
The lender does this by calculating your debt-to-income ratio or DTI.
Consolidating debt to a single, automated, monthly payment simplifies your borrowing process and allows you to focus on what matters. Debt consolidation saves you time, money and hassle.
Even when you're careful about managing money, emergencies or financial setbacks can leave you facing unwanted debt.
Although they carry a clear benefit for borrowers, consolidation mortgages pose a higher risk for the lender and aren't easy to come by.
Available consolidation loans often carry stringent qualification requirements.
There is no guarantee that the home you want to buy will fall into the proper LTV range.