When it comes to applying for a mortgage, most people focus on their income. But it turns out that the fastest route to getting approved for a bigger home loan is to pay off debt.
With Loftium, you can speed up this process: use Loftium for the down payment, and free up your own funds to get debt free.
Why does paying off debt matter?
Simply lowering your current debt level doesn’t help much if you still have monthly payments to make. Even if you only have $6000 remaining on your car loan, if your monthly car payment is $500, that’s $500 per month less you can put towards your mortgage. This can mean ~$100,000 less when it comes to your bank approved purchase price, all because of a $6,000 car loan.
If you have the savings to do it, totally paying off debt could be a smart move. You’ll get debt free (woo hoo!), potentially improve your credit score and likely get approved for a bigger home loan.
Think it’s impossible to pay off debt? Loftium can help.
Use Loftium’s down payment to offset the savings you put towards your debt payoff. Get debt free and get a down payment from Loftium, in one fell swoop.
What this actually looks like.
Here’s a typical example of how our homebuyers use Loftium’s down payment, pay off debt and boost their max home price: