idaho_native57
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If it was me, I would pay off the debt to get it out of the way. That shows responsibility. |
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whiskeyflirt
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I would personally clear away my debt, or speak to a financial planner about what you would like to do, perhaps you can consolidate your debt into a manageable monthly payment and still be approved for a home loan. good luck! |
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Chef Frisbee
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well - is your credit good enough to get financing for the remainder not covered by the down payment?
If so - then buy the house. If not - pay off the debts and clean up your credit |
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lilbitmom
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The less debt you have, the more money you'll be able to save for a down payment on a house and be able to make house payments later. It looks better for your credit to have lower debt. |
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justwondering
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You would have to speak to a lender - some want all debts cleared before they will lend you money unless your income is high enough to cover it all (in which case your debt would be paid off). So check to see if you will qualify before doing anything. 100% ffinancing on a house is expensive when it is available so you will need a down payment - maybe this is not the time to buy.. |
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geo i
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I'm a Loan Consultant and your loan is based on your credit score or FICO...IF you have a credit score in the 625+ you may be qualified for a 100% finance and you can use that money for anything you want.But if I was you I will look at my credit report and see where you stand... |
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Adam S
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That's a tough call, to be honest. If you current debt is very high, you might not be able to get as large a mortgage as you'd like.
Depending on what size of mortgage you are hoping to get, it might be better to pay off your debts and then start saving for a down payment on a house for the future. Once you're debt-free, you should be able to get a larger mortgage than you'd have been granted when you have a lot of debt hanging over you.
On the other hand, owning a home has a variety of advantages that might outweigh the downsides of continuing to be in debt.
It really depends on your situation, and there are advantages and disadvantages to both options. |
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godged
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Why not do both? Pay off the highest interest debt you have, but allow yourself some money for a down payment. |
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LVgirl
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Pay off your debt first. You can always make more money. It will also give you a better credit rating. Or, pay off most of your debt. Save the rest towards buying your home. |
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beccasmom99
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Debt to Income ratio plays a big part in what kind of loan you can get. Discuss your options with your lender. I would probably pay off some of the debts and put some in savings for emergencies. |
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just4success
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i'd go what the rest of us say here.. pay off your debt to improve your credit score.. if you're planning to buy a house soon, call the credit bureaus to update your credit record immediately for the lenders to see.. if you're a first time homebuyer, there are special loans that offer little or no down payment.. best is to talk to a mortgage broker that can find the best loan for you among hundreds of lenders without pulling your credit every time there's an inquiry.. most brokers operate US-wide and have state-of-the-art online tools to readily tell you what rate you can get.. here's one i recommend -
http://www.arizona4pinoys.com/arizona-best-mortgage-interest-rate.html |
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cpb
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Good question...if housing costs are going up in your area, iI recommend using it for a downpayment, since it could be an investment that increases in value.
However, if prices are declining, it may not be the best time to buy (wait a while until prices stabilize) so pay off the debt. |
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psycho_chic_in_training
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You cant get a mortgage if you have any debt in most cases, so best to pay off the debt first. |
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Mary F
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I would clear away old debt before accepting new debt. |
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