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Small Business Debt

Small Business DebtDoes my small business debt make it harder for me to buy a house?

I used to run my own small business from home, but I now have a regular job full time. I intend to buy a home in the next 2 years and I wonder how I should work hard to repay the debt of a small company I used to run (I have not filled out the paperwork to officially close the business).

The company has its own tax identification number and am currently using my earned income to repay debt on 2 business cards I have, but I would like to lower the amount I pay (paid in 3 years instead of 2).

The company accounts are in good standing (no late payments, not maxed, etc.) and I have no personal debt and credit good. Should I put more emphasis on increasing the amount I save for a deposit on the house, or repayment of debt of the company?

When I apply for a mortgage in 2 years I must say that the lender on the debt I owe to a company that, at least on paper, is still open? (This is a sole proprietorship)

You said that the accounts were in order. There is nothing wrong with the transport of certain debts, and many people claim that creditors are seeking a certain amount of debt in the amount of credit available to you. Part of it comes down to interest rates. If your credit card is a very low interest or even 0% in April and then with a larger down payment you need to borrow less money from a bank for your home. Since the mortgage payment would be higher interest than credit cards, it would be advantageous to reduce your payments by credit card that is not, and greater attention to the deposit of your home.

Shop for a lender today and ask them.
feel free to users when you buy.

focus on debt repayment, because if you have good credit, then it will not be difficult to find a higher LTV (loan to value) loans. Just get rid of debt. A good credit rating and income is much more important that having money in the reserves or a greater down payment when it comes to getting a loan

Posted on January 23, 2010.
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