Q&A: Applying for a personal loan will it affect us in buying a home?

Question by YSM: Applying for a personal loan will it affect us in buying a home?
We payed down our credit cards and we need a personal loan to pay off a college degree and do some fixer upper in the house we have now. We want to buy another home will this affect us in getting a loan with the bank for our new home? Our credit scores right now are excellent. Need professional advice.

Best answer:

Answer by IG64

Yes it will hurt your score.

Your score will be impacted by the mere fact that you apply for the loan.

If after borrowing the money and paying off the student debt you still have total debt greater than it is not that will have a negative impact on your score.

If the student loans are a problem consolidate them and stretch out the payment terms. Don’t waste money fixing up the house you are getting ready to move out of that would be senseless. In most cases people spend more fixing up a house they are planning on selling than they get back for the increase in the sale price of the house compared to just selling as is. Remember, someone buying a used house will always have things they want to change and the odds of you changing something just like the buyer would have are about zero.

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