Should I apply for a home loan or a business loan first? Will one affect the other?

I’m planning to apply for a home loan to get my very first home soon, and I have plans to apply for a small business loan to buy a small business. Should I get my home first and then apply for the business loan or vice versa? Also, my income at the moment is not enough to support both, but once I get the business, I will be making more money.

I should add that the business I’m interested in has consistently made money, so that would make it easier to get a loan for it, right? The Home loan I’m looking for would be in the 100,000 dollar range and the business loan would be about $35,000 (yes, it would be a small business and a very small, affordable home). Also, my income right now is about $20,000 (I’m a student) and it will go up to $45,000+ once my business is established. I should mention that I need the home soon so that can’t wait too long.

How should I go about it all? Thanks!

By | 2013-08-25T07:19:23+00:00 August 25th, 2013|Mortgages Home Loans Interest Rate|1 Comment

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  1. Dude August 25, 2013 at 8:14 AM - Reply

    Get the business loan first. After you get the business loan you can show your higher income to get a home loan.

    If you get a home loan first then the bank will think you are preoccupied with paying off the home loan and you might not get the business loan. Also if you apply for the home loan first you might not get it at all since your income is very low.

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