I have a condo that is near completion and will begin to look for a mortgage in the next 4-5 months. I have a car note with about $10,000 left on it. Would a lender like to see that paid off and leave me with no monthly debt or have that $10,000 in the bank. I would not look to add to the down payment I have already made and have enough savings to cover the closing costs.
Thanks
2006-12-27 10:17:11 · 7 answers · asked by bryan l 1 in Business & Finance ➔ Renting & Real Estate
The only debt I have is my car note. Credit cards are paid off each month. 100K/year vs 380k mortgage. 650 FICO
2006-12-27 10:39:20 · update #1
Less debt I beleive b/c total debt vs income is how they figure out how large your payment can be and there fore how much money you can get in a mortgage - but check with a loan officier first b4 doing anything
2006-12-27 10:21:00 · answer #1 · answered by ladyshadowwalker60 2 · 1⤊ 0⤋
Depends on your income. IN GENERAL, if you can keep the car note and still be at 35% Debt to Income or less, then use it as a down. I'm guessing that won't be the case though. Also, there are a bunch of other factors to take into consideration. Why don't you discuss this with the lenders as they start to pull your credit and look at programs and ask them which scenario would give you the best possible loan? Good luck! Jay from Loanleaders.
Click on my avatar if you have any more question. I'm sitting at my little loan desk as we speak. :)
2006-12-27 10:22:24 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Lenders want a lot income to debt ratio. Revolving debt is the worst kind of debt to have (credit cards, etc). I was also told that lenders like unused credit such as credit lines without a balance. Good luck!
2006-12-27 10:21:53 · answer #3 · answered by bonlwick 3 · 0⤊ 1⤋
depending on your debt to income ratio. if you have very little debt and your income is enough to qualify the loan then the mortgage lender would look at the monthly savings as a better picture.. but if your income is low and debt high then pay off the debt.
2006-12-27 10:21:13 · answer #4 · answered by philputt94 1 · 0⤊ 1⤋
It would not matter. The asset and liability cancel each other out.
Having money in savings is no guarantee that it will be there tomorrow, so banks don't see that as much of an asset.
Having no debt is real good for anyone.
If you pay off the loan, you will be ahead. I am sure the interest on the loan is higher than the interest you are getting on the savings.
2006-12-27 10:22:37 · answer #5 · answered by regerugged 7 · 1⤊ 2⤋
Hello
Always make sure that you have liquid (CASH) assets ... It always looks good on paper.. And also Lenders like to see that you have a few months of payments and utilities costs already saved up... As uncertain as life is.. YOU NEED A SAVINGS OF 10k
Great job on saving that up... Just keep on making the payments on time for the car..
And youll be good to go
2006-12-27 10:20:52 · answer #6 · answered by DARRELL J 1 · 1⤊ 1⤋
write the details at kishaloy_bhowmick@yahoo.com .The credit score is no doubt very very good and won't be a problem dealing with this case...
regards,
kish
480.751.4125
2006-12-27 20:27:30 · answer #7 · answered by kishaloy_bhowmick 2 · 0⤊ 1⤋