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Could a consolidation loan complicate mortgage preapproval?
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A lower monthly payment from consolidating credit-card balances might help with cash flow, but I’m unsure how a new loan could affect mortgage readiness. Would the lender count its payment in the debt-to-income calculation, and how might the new inquiry or changes to card balances factor into underwriting?
I’d want to ask the mortgage lender before opening anything, especially if an application is coming up soon. Is paying down card balances without taking out a new loan treated differently, and does the answer depend much on the application timing?
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