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Wondering if anyone has recently bought a house while have credit card debt? My wife and i have a co-op now never paid late on mortgage or any credit card or regular bill, we are n the process of selling the co-op to buy a new house. We both have great credit (800+ and 760) and were wondering if anyone else was in our shoes. We just got married last september and $$$ got out of hand a bit quick but it was worth it.
Wondering if anyone has recently bought a house while have credit card debt? My wife and i have a co-op now never paid late on mortgage or any credit card or regular bill, we are n the process of selling the co-op to buy a new house. We both have great credit (800+ and 760) and were wondering if anyone else was in our shoes. We just got married last september and $$$ got out of hand a bit quick but it was worth it.
I had some credit card debt when I bought my house but it wasn't excessive. My mortgage broker advised to stop spending or pay cash if we absolutely wanted to buy something.
Wondering if anyone has recently bought a house while have credit card debt? My wife and i have a co-op now never paid late on mortgage or any credit card or regular bill, we are n the process of selling the co-op to buy a new house. We both have great credit (800+ and 760) and were wondering if anyone else was in our shoes. We just got married last september and $$$ got out of hand a bit quick but it was worth it.
How recent are those scores and how current is the credit card debt and as the above poster said what is the debt to income ratio? I don't care how great the scores were before the $$$ got out of hand but a bank will decline you in a NY minute if the scores are not good, or there are too high balances in the credit cards.
Another thing to consider, if either of you has recently changed a job (company as opposed to a position) that can be a negative as they assume you may be let go. The sole concern on the bankers part is that you can and will be able to pay them back. The last thing they want is your house back.
They also want to see 2 years at the same job, so many $$$ months worth of money sitting in the bank.........and don't forget about down payment and closing costs.
A lender will tell you right up front what kind of mortage you can get. It's all about how much money you have left over after the monthly debt is paid. Simple math. Try CNN money's affordable home calculator to get a ballpark number, then go get a prequal. You can do them online with some banks.
The problem you may run into is that they will probably not assume that your co-op will be sold, so that mortgage payment will factor into your debt until it's off your books. Also, if you choose to rent the co-op, a bank will not recognize rental income until you've been getting it for 2 years.
I know that the more you, banks and CC companies look into your credit history the lower your score will become. They may be looking without you even knowing. I agree with paying down any credit cards you have now and paying cash as much as possible. And save (I know it hard) as much money as possible. Good luck.
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