Conventional loans and FHA loans are the typical way for home buyers to obtain financing, but the requirements can be strict and unforgiving. We all go through times in our lives that may force us to turn to credit to stay afloat and during the time you’re paying down that credit, it can be difficult to get a home loan.
Here are some tips for paying down your debt so that you can obtain a traditional loan:
The best first step is to create a budget. List out every single expense you have each month such as rent, car payment, insurance, phone bill, gas, and groceries. If you don’t have a good idea of where your money needs to go every month, you won’t have a good idea of where you can save to put money aside to pay down debt.
It may be tempting to pay off the lowest debts first, but financial professionals will tell you to pay off the debt with the highest interest rate first so that you can still make minimum payments on the other debt with lower interest rates.
This is a great way to navigate around those high interest rates so that you can make a bigger dent in your debt. This is an advantage to you if you can pay off the amount before the higher interest rate kicks in after the transfer.
Most importantly, if you need to purchase a home in the meantime, Arizona Special Home Financing might be the way to go for you. With flexible terms it can mean being approved and funded while you’re paying down your debt in order to obtain conventional financing on your home.
Call Level 4 Funding today to learn more!
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.