Can debt consolidation negatively effect you purchasing a home?
Question:
Answer:
That's too general of a question. If you've been responsibly paying your debts and have responsibly consolidated to reduce the interest you pay, it's different from the kind of consolidation done in response to credit problems.
Websites aren't going to be able to answer that question.
YES! Don't do it!!
Please read the info on this site first!
http://www.bankrate.com/brm/news/cc/2003...
Many times consumer credit counseling is looked at just as negatively as filing bankruptcy, through the eyes of a lender.
It can also lower your credit score. I've known many people who have used the services of consumer credit counseling agencies. You make a payment to to them every month and they pay your creditors. Many times, the payments do not get made on time and this results in your creditors reporting you as delinquent.
Also, when qualifying for a mortgage, many lenders will look at how many open accounts you have. They want to see that you have a history of paying your bills on time. If you have no open accounts, they don't have anything to go on, so you may not be approved.
Talk to a mortgage broker about your individual situation. In most cases, it is best to buy the house first and then look into things like debt consolidation.
Have a look here.
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