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Should I spend more time paying down credit cards if I already have high FICOs and good DTI?


xelda
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I'm trying to decide if I can buy a house in 6-8 months, or if I should wait 12-14 months. The extra time would allow me to save up more money and pay down my CC debt. However, that only marginally lowers my DTI. True, the lower utilization would probably bump my FICOs over 800, but would that make much of a difference?

 

Here's my current profile:

- 770 EXP, 756 EQ, 788 TU (FICOS reported by PSECU, DCU, and Discover)

- 15+ years of credit history, thick file, AAOA is 7+ years, no INQs, haven't opened or applied for a CC in over 5 years

- No lates or defaults ever

- DTI with my current rent is 31% but if we can include my annual bonus, it would be 26%

- Biggest debt is my student loans

- Just under 20% overall utilization on credit cards. I will have this down to 15% in 6-8 months, or 11% in 12-14 months.

- 5 years of continuous full-time employment but just recently started with a new employer

- Total income with bonus is $70K

- First time home buyer, not married

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Check out the EDITED TO REMOVE SOLICITATION - and sign up for a workshop. Your profile is absolutely great and you should qualify quickly. It will be a breeze for you!

 

PLEASE BE CAREFUL TO NOT BREAK THE RULES - THANK YOU

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There is no need to if you would rather build up a larger down payment or more important - to save us a nice reserve

 

Given the dti and scores paying down the debt farther (which is ALWAYS a good thing) will not do much to improve your chances of a mortgage - you are already a highly qualified applicant -

 

BrianBTheLoanProfessor

Mortgage Forum Lead

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