Pay Debt or Save More for Home (mortgage, good credit)

[christina0001]

Pay off at least the credit card debt. The interest is costly and it's not tax deductible like the interest on your student loans is.

[Kylekd4]

As a mortgage broker I would say pay off the debt to get a better credit profile and as a home owner I say pay off the debt before you buy a house because it can be alot harder to pay down debt when you are a homeowner.
And with all the 100% financing programs there is no reason why you cant do both within a reasonable time frame.

[DodgeViper01]

Originally Posted by Kylekd4

As a mortgage broker I would say pay off the debt to get a better credit profile and as a home owner I say pay off the debt before you buy a house because it can be alot harder to pay down debt when you are a homeowner.
And with all the 100% financing programs there is no reason why you cant do both within a reasonable time frame.

Very well stated.

[tahiti]

Originally Posted by Kylekd4

And with all the 100% financing programs there is no reason why you cant do both within a reasonable time frame.

this stuff still exists with the mortgage meltdown crisis? serious question.

[mb919]

Another good reason to pay down (off) the debt is because you might fall into the trap that me and my ex fell into. We decided to save our wedding money for a down payment- except we failed to understand that we had that debt because we didn't manage our money well, so we ended up blowing the money and not paying down a dime of our credit card debt.

[TimtheGuy]

Originally Posted by tahiti

this stuff still exists with the mortgage meltdown crisis? serious question.

Yes, contrary to the wonderful media in this country...100% loans are alive and running strong (loans amount under $417k)!!

[DodgeViper01]

Originally Posted by tahiti

this stuff still exists with the mortgage meltdown crisis? serious question.

Yes there are still banks that are offering these programs but you have to be VERY well qualified. You have to have a good salary compared to the purchase price, credit score above 700 and most likely over 750 and PLENTLY of references and proof of job security, not to mention plently of ASSETS!

[tahiti]

Originally Posted by DodgeViper01

Yes there are still banks that are offering these programs but you have to be VERY well qualified. You have to have a good salary compared to the purchase price, credit score above 700 and most likely over 750 and PLENTLY of references and proof of job security, not to mention plently of ASSETS!

you'd think if a prospective buyer qualified with the criteria you listed (and especially the bolded part), you wouldn't need a 100% loan, lol.

sheesh, when i bought my first house, 90% loans were the MAX, and you paid PMI out the wazoo. maybe it's time to get back to that.

[DodgeViper01]

Originally Posted by tahiti

you'd think if a prospective buyer qualified with the criteria you listed (and especially the bolded part), you wouldn't need a 100% loan, lol.

sheesh, when i bought my first house, 90% loans were the MAX, and you paid PMI out the wazoo. maybe it's time to get back to that.

That is the ironic part. I just laugh at some of the things banks require now.

[OnDLookout]

The general answer to that question would be to buy a house ASAP as it will appreciate. A good rule of thumb is to never borrow money to purchase something that depreciates.

However, given that the current bubble in housing prices seems to ready to pop, my decision would be to pay down the credit card debt as quickly as possible.