Some of the last round of changes from the government regarding qualifying for a mortgage was that if you have a balance on your unsecured line of credit, then to qualify for a mortgage the lenders require that we use a 3% payment of the balance of the line of credit.
Articles for First Time Homebuyers
Put yourself in a bank or lender’s shoes. Someone comes into your branch and asks you to politely loan them $300,000. You are a big bank, but $300,000 is still a lot of money. How do you ensure this person is going to pay back the money you loan them?