Consolidating debt into a new mortgage
After you sign the documents, your lender will send payment directly to each company.Depending on your credit and the specifics of your loan, the lender may require that you close your accounts with the creditors so you don't rack up more debt, compromising your ability to repay the loan.Debt can be very overwhelming to handle, and if you have to pay loans with high-interest rates, you may feel as if you are paying for something that simply won’t end.That’s why so many people consider consolidating their debt, making it easy to simply pay one lender than having to pay multiple creditors every month.More importantly, the more debt you include, the more money you will need to put down.For example, if a bank lends up to 95 percent of the value of a property, you must put ,000 on a 0,000 loan.Of course, if you had that money to put down, you'd be better off satisfying the debt in the first place, unless you are getting the down payment as a gift from a relative, which is the only source of down payment lenders allow beside your own money.When you are ready to close on the loan you will need to contact your creditors in addition to coordinating the parties for the purchase. This is the amount needed to satisfy your debt entirely on the date of closing.
There are many reasons why you may want to consolidate your debt, especially if you have a mortgage.
Carl Carabelli has been writing in various capacities for more than 15 years.