Can a business loan hurt your mortgage chances?
We just started looking for a new house now that the kids are older and need their own space. Thing is, last year I took out a business loan to expand my mobile repair service — new van, equipment, all that. I’ve heard that might make banks hesitate with mortgages, even if it’s not personal debt. Someone on here mentioned they went through this exact thing. Wondering if anyone can share how it played out for them during the approval process?
I was in a similar spot not long ago. Took out a loan for my landscaping business, and when we applied for a mortgage, the lender definitely asked about it. Since I had signed a personal guarantee, it showed up in my DTI. But I prepped everything ahead — tax returns, bank statements, and a strong explanation of business growth. If you’re in doubt, check will a business loan affect getting a mortgage — helped me see what to expect.
Honestly, I think a lot of people underestimate how connected personal and business finances can get. I’ve seen friends surprised when lenders dug deep into their business stuff. To me, it’s just about being prepared — if your paperwork is solid and you’re transparent about everything, the loan doesn’t have to be a dealbreaker.