I will be finished paying on my car by then and I will have an extra $300 per month. Should I save the money for a downpayment, or pay off some bills with it. I am very confused anybody out there got some answers?
2006-08-10 22:35:54 · 10 answers · asked by Jason L 3 in Business & Finance ➔ Renting & Real Estate
Priority one is to pay all of your bills on time. This is the only way your credit will improve. Your credit score will also improve if you are carrying less debt, but if you have had any late payments in the past 12 months, I suggest you sock anything extra away for the down payment. If you haven't had any late payments in the past twelve months, pay off the higher interest rate credit cards. And of course do not increase your credit debt. I suggest you go ahead and get in contact with a mortgage broker so that you will have a defined scenario of the opportunities that exist when you are ready to move.
2006-08-14 09:22:31 · answer #1 · answered by linkus86 7 · 0⤊ 0⤋
In this current buyers market, anyone can get a mortgage. What you should be concerned about is your rate and a lot factors into that. Now, you can get whats called 100% financing as long as you have fairly decent credit. You can also get whats called a Seller Held 2nd, which means you get maybe 90% financing and the seller hold a 2nd mortgage for the remaining 10%. So I wouldnt be worried about the downpayment. Work on paying off your bills, but you may also want to look into a secured credit card or 2. Having a secured card for 30 days while paying atlease 50% of your balance on that card will raise your score by 20 points. That plus, many lenders are looking at open tradelines on credit reports. If you dont have some open and rated accounts, its almost as bad as having collection accounts.
Hope this made sense and helped.
2006-08-11 02:53:48 · answer #2 · answered by megamom1976 2 · 0⤊ 0⤋
Do both. This way, you help your credit in both ways, by paying off outstanding debt, and saving money for a larger down payment. If you only have one choice, save the money. A mortgage that is $2000 higher can cost you several thousand dollars more over the course of the mortgage. You are also more likely to be approved for a lower mortgage, regardless of your financial standing.
2006-08-12 15:34:31 · answer #3 · answered by endsjustmeans 3 · 0⤊ 0⤋
An $300 per month won't be enough to keep you in a home. Seriously examine your budget and see if you can bring some of the expenses down:
downsize your cellphone package (less minutes, no texts...)?
trim your grocery budget
seriously save energy
cut back on gasoline consumption
A house requires more upkeep than an apartment, than only will be more expensive (mowing, utilities, etc.) Start saving now and start looking at the market to get an idea of where/what you could afford...
Good luck...
2006-08-11 02:28:13 · answer #4 · answered by Anonymous · 0⤊ 0⤋
My suggestion is to pay the bills first, before you take on another debt. Maybe split 200/month for bills and 100/month for savings, for example. You'll improve your credit rating and be closer to a down payment. Both of these will improve your chances of getting a lower interest home loan.
2006-08-10 22:47:12 · answer #5 · answered by melby 2 · 0⤊ 0⤋
Jasson work on geting your credit straight #1 priorty next you are going to have to have a larger down payment than most clients with good credit expect around 9 1/2 to 10 percent then call american home mortgage these guys will put you in a house they are all over Memphis,Nashville, Fort worth and Dalles.
2006-08-10 23:54:46 · answer #6 · answered by howaboutit99@sbcglobal.net 2 · 1⤊ 0⤋
circulate to the discern's living house, and stay lease-unfastened for a 300 and sixty 5 days! think of roughly how plenty money you will have on the top of that 3 hundred and sixty 5 days to purchase a house, or do regardless of you mandatory to do.
2016-12-11 06:49:02 · answer #7 · answered by ? 4 · 0⤊ 0⤋
save it for the down payment and seek out a friend or family member who may be willing to co-sign if necessary. if you can save enough for a down pymt (more than the standard 10%), you may not have to have a co-signor after all. it really depends on how bad your credit is. what's your debt to income ratio for example? that plays a big factor in addition to your overall credit score and amount you can down pay (because the down pay obviously reduces the amount to be financed.)
2006-08-11 03:13:55 · answer #8 · answered by hiddenhotty 4 · 0⤊ 0⤋
down payment will help secure the loan.
But you really want to pay off your bills. You really need to find a way to do both.
2006-08-10 22:49:56 · answer #9 · answered by Jon H 5 · 0⤊ 0⤋
You should buy a refrigerator and start decorating the box.
2006-08-10 22:42:51 · answer #10 · answered by Joe 2 · 0⤊ 0⤋