Posted on: 06th Apr, 2009 11:36 am
Hi Me and my wife make about 5000 dollars a month gross. Credit score is well over 700, Have 25000-30000 for downpayment . here the glitch we have 55000 in credit card debt. and one auto loan for 500 a month and student loan for 150 a month.
I know I ll not qualify for a mrtgage under these circumtances. but what if I paid the whole crdit card debt from 55000 to 0 within a month . and then apply for mortgage . Do you think I ll qualify for a 250000 loan in ny. or the lender looking at my past will not approve me.
I know I ll not qualify for a mrtgage under these circumtances. but what if I paid the whole crdit card debt from 55000 to 0 within a month . and then apply for mortgage . Do you think I ll qualify for a 250000 loan in ny. or the lender looking at my past will not approve me.
What is the monthly payment of 55K in credit card debt?
Hi Sameer, Ok paying down the 55k debt in one month would be great. But as in current market condition you should watch how you do this. For example if you have 55k in debt that means creditors have given you pretty high CC limits. Paying them off all at once, They could shut down the CC cards or lower the limits, In part would actually lower your score and put u in a bad position. Paying the overall debt down to about 30% or 1/3 of the total Credit Limit would be the best thing to do in my opinion. As far as a score of 700 I know a traditional loan requires a score of 720 and FHA looks for 620. How much money do you make in a month?
it's my opinion that the paydown of the $55K would help to allow you to qualify for the mortgage you're seeking. i don't know the details of the transaction you're describing, so i cannot make a real judgment on your qualifications, but paying down that amount, i think, would be more beneficial to you than paying down slightly and worrying about your credit score.
