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7. Not structuring your loans and debts to your best financial advantage.
Sometimes a lender will require you to pay off debts to qualify for a "traditional" mortgage. In other cases, you may be able to qualify for a mortgage without paying off the debts.
Should you pay all of them off?
Should you pay some of them off?
Should you pay none of them off?
If you're paying more in interest on the debts, than the money you have invested elsewhere is earning...you may be better off getting rid of the debts all together.
If you find yourself stretched out with credit card payments and other loans, it is well worthwhile to see if you can consolidate them into a lower interest personal loan...
However, a word of caution. It is NOT wise to refinance your home mortgage to pay off personal debts, unless you are willing to cut up your credit cards or toss them into a safety deposit box so you aren't tempted to charge up the balances up again.
Need help with structuring your loan payments?
As you are buying a home, we can share additional suggestions and advice to help you decide how to structure your loan(s) to your best advantage.
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