Buying new home Credit question?
I'm a first time home buyer, as is my future wife (wedding is 6 weeks away). We are interested in spending about 70-110k for a house. I have a nice job and her job is ok.We both have school loans, and car payments, and we both have credit cards.We figure we will have about 7-10k coming in from the wedding.Do we a) Pay down 70% of our credit cards & keep renting? And save up a year or two for another down paymentor do we b) Use that money to put a down payment for a house, and pay of CC as we were.We want a house because the area has few apartments to rent, and also we need some equity. Will creditors/bank loans be more interested in the down payment? or the CC payment? by js_js_new_consumer from , . Jul 15th 2011
Gianni Cerretani (mortgagegodfather)
#32 ranked lender in Georgia - 238 contributions
Congratulations on your new nuptuals: Depending upon your income and debt to income you may qualify for FHA which only requires 3.5% down so if you were talking a purchase price of $100,000 that would only be $3,500 and then you could have the seller pay the rest of your closing costs- that still leaves you plenty of wedding money to pay down the credit cards and keep a nice reserve- sounds like you should get with a trusted loan officer and let them put some options together for you as rates are low and so are house prices- Good luck!
John Schweer (johnschweer)
#24 ranked lender in Kansas - 163 contributions
FHA all the way, with the 3.5% down you can also get a gift if you have a family member, godparent etc that would give you the gift you could get in with ZERO out of pocket when its all said and done. If either of you is military or veteran there is addional programs to look into.
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