| Mortgage
Articles |
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Effects
of Debt on Obtaining a Mortgage
by Scott Bilker |
| Scott Bilker is the author
of the best-selling book "Credit Card and Debt Management." He
is also the Editor and publisher of the FREE DebtSmart(r) E-mail
Newsletter http://www.debtsmart.com.
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|
 Scott,
I was wondering about what sorts of ramifications my credit will have on
my obtaining a mortgage in the future? Here is the situation, while in
college I got myself into credit card debt (about $6000). After college
I married a debt-free man (no student loans, 1 credit card great
investments). Over the last 1 1/2 years we have paid my debt down
considerably (currently I owe about $2000, each card is at about $500).
One of them was charged off the other 3 were closed by the credit
issuer. Though my credit report is looking better, I would like to know
how this will impact our obtaining a mortgage (not in the too near
future- I'm 25 he's 27, we feel we'll be ready to purchase a home in the
next 7-10 years). I'm very concerned about my credit rating inhibiting
him.
--Darlene
Answer
Darlene,
It's very good that you're asking these questions because there can
certainly be an impact on your getting a mortgage. When you apply to get
a mortgage it's going to be in both your names so the bank is going to
look at both credit reports. They're going to see the same information
that you mentioned but they're also going to see that you've taken care
to rectify the situation by paying off your debts. I personally believe
that by the time you're ready to buy a house none of that is going to
matter at all! That's because it's so far in the future (7-10 years)
that no bank is going to care about your college years. Plus by then
it's all going to be removed from your credit report anyway. Keep up the
good work!
Scott |
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