buying house and debt

shcole08 Posted: Apr 28, 2009 05:07 PM

buying house and debt

A friend who just bought a house said you have to pay off all your cc first. Is this true?

RisiLeigh Posted: Apr 28, 2009 05:09 PM

Re: buying house and debt

Absolutely not!!! DH and I definitely have CC debt, and I have other debt as well, like student loans, etc. and we were pre-approved for mortgages with no problem!

Ayne11 Posted: Apr 28, 2009 05:09 PM

Re: buying house and debt

Posted by shcole08

A friend who just bought a house said you have to pay off all your cc first. Is this true?

I don't know if it's true per say but I think it's a good idea. I'm sure they look deeply into your credit history before the give you a mortgage.

futuremrsfab Posted: Apr 28, 2009 05:12 PM

Re: buying house and debt

Posted by Ayne11

Posted by shcole08

A friend who just bought a house said you have to pay off all your cc first. Is this true?

I don't know if it's true per say but I think it's a good idea. I'm sure they look deeply into your credit history before the give you a mortgage.

I agree- they look at your credit-income ratio- and I dont know the number- but as long as its not too high then its fine- its also important that your bills are payed on time

CD516 Posted: Apr 28, 2009 05:18 PM

Re: buying house and debt

Im a broker. Like the other girls said, no its not true. Although it could have been true for just her situation. Her debt to income ratio may have been too high and therefore she had to have her debts paid before getting a loan.

shcole08 Posted: Apr 28, 2009 05:48 PM

Re: buying house and debt

no she bought a house she was just saying...does anyone know what the average mortgage payment is on a house?

futuremrsfab Posted: Apr 28, 2009 05:53 PM

Re: buying house and debt

Posted by shcole08

no she bought a house she was just saying...does anyone know what the average mortgage payment is on a house?

you can use this- you enter the house amount and it gives you the average monthly payment Mortgage Calculator

Cutechef729 Posted: Apr 28, 2009 06:14 PM

Re: buying house and debt

Thanks for the advice and calculator. I think DH and I are going to get preapproved this summer after we pay off a big chunk of our credit cards.

MrsList Posted: Apr 28, 2009 09:36 PM

Re: buying house and debt

Nope! We had some credit card debt (and still do) and we still got a mortgage. You won't be able to get AS MUCH of a mortgage but you'll be able to get one.

msabla1 Posted: Apr 28, 2009 10:05 PM

Re: buying house and debt

Will the mortgage rates be steady for the next few months?

ChristineAaron08 Posted: Apr 28, 2009 10:16 PM

Re: buying house and debt

it all depends on your debt to income ratio. If you have some cc debt, its not bad. But if you have more than a little, you will be better off paying it down to get a better rate on a mortgage.

Future Mulligan Posted: Apr 29, 2009 09:19 AM

Re: buying house and debt

usually its fine, it depends on your debt to income ratio......not sure if you saw my post yesterday on LIF but we have some credit card debt in the amount of 7K that isn't even ours - DH opened the cards for someone else to use but luckily it's not enough to have any effect on us getting a mortgage......THANK GOD!!

jaep129 Posted: Apr 29, 2009 12:09 PM

Re: buying house and debt

No. You can also put certain debt (school loans, car loans, and other loans) into your mortgage payments. You would borrow more $ but its usually at a better rate and everything is in one payment.