In the Mortgage Industry, we hear from buyers all the time that they get turned down for a mortgage because they don’t have good credit, or they have too much credit card debt. Some buyers have 10’s of thousands of dollars in credit card debt, with high interest rates that just leave no end in sight.
First things first, if you want to own a home meet with a qualified mortgage lender regardless of your situation. Licensed Mortgage Loan Officers are trained, knowledgeable, and experts at what they do, and they only want to help you with your home ownership dreams. A good Mortgage Loan Officer won’t say “sorry you have too much debt” and leave you hanging. They will instead provide you with resources such as a credit counselor or credit repair service, who will get you on a plan to paying down your debt. This can be an amazing tool for many people struggle with debt and credit issues, and gets them on the right path to home ownership. When clients use the assistance of a Mortgage Professional before they are ready to buy, they have an opportunity to be more successful in meeting their goals, as long as they are willing to make changes and take professional advice on their situation. So make the call, take some advice and assistance, and get on the right path.
Secondly, do some research! Paying off a ton of debt can be very difficult, discouraging, and seem hopeless; but it’s possible. There are a ton of resources out there that can help you, even in just looking up tips and tricks online about how to be frugal but still have a life will paying off debt. Check out his article for example, 8 Ways to Pay Off Credit Card Debt Without Being a Hermit, from The Penny Hoarder, and find a few ways to help you apply a few more bucks to your debt situation.
Third, Keep track of your balances and progress! You MUST KEEP TRACK of your situation! Whether you use an app on your phone, an excel spreadsheet, a giant colorful thermometer on your fridge, or a notebook, it’s a must! Compile all yours debts including loans (personal, auto, student, and others), credit cards, leans, judgments & collections, monthly bills & expenses, and anything else, and it log in one place. Winners keep score; if you aren’t keeping track it’s difficult to see what you need to work on and track progress. Research the tools to help you. The Simple Dollar is a great website full of money saving tips and financial resources for just about anybody, and they have a great list of The Best Debt Repayment Tools and Apps that can help you in your debt payoff journey!
Lastly, Stay committed! Just like any goal you have in sports, education, career advancement, health, weight loss, or physical fitness, you need to be motivated and committed in order to meet your goals! If you need help in finding ways to staying accountable while you are chipping away at your totals, check out these 3 Ways to Staying Accountable While Paying Off Debt, from Kim Galeta, Personal Coach for Financial Freedom. Don’t forget the Mortgage Professional from earlier! They can help you along the way with questions too!
If you’d like more information about how you can obtain a mortgage with your current financial situation, we would like to help. Whether you are ready to purchase now, or you’d like to start a plan to make it happen in the future, contact an experienced Mortgage Loan Officer at MHMGB@MarketplaceHome.com or call (920) 328-0049. We’d be happy to schedule an appointment for you to discuss your situation and to offer whatever assistance we can to make your home ownership dreams happen.