Contact Kate For Strategies To Buying A First Home

by First Time Home Buyer

Contact Kate For Strategies To Buying A First Home: We're buying our first house and have mortgage questions for Ask Kate! We are preparing ourselves because our credit score is OK (not great), we have some credit card debt and we don't have much savings for the down payment.

We are trying to pay down the credit card debt so that our credit score will be in a great shape when we apply for the loan. We are shooting for the 720 range but are concerned about our lack of funds for the down payment.

Do you think we should be saving the money we are using to pay off the credit card debt for the down payment and closing costs? What is your suggestion for the best strategy for the first-time home buyer: pay down the debt or save a 10% down payment?

In an ideal situation, we would love to be able to accomplish both, but I am not sure if it is worth waiting and keep renting for another 5 years. We are looking for 30-year fixed-rate loan, so we would like to bring our interest rate and other fees as low as possible.

Answer: Contact Kate For Strategies To Buying A First Home

Dear First Time Home Buyer, Mortgage pre approval is the starting point to owning your dream home! A mortgage pre approval will tell you if you need a down payment or to reduce debt. Sometimes it is a balancing act, a mixture of both.

But without mortgage pre approval, you are left guessing.

Some mortgage lenders require more down payment but others want to see less debt. So, here is mortgage advice I used to give my first time home buyers. If you keep your cash, you are prepared to pay off debts, increase your down payment or a mixture of both, depending on your mortgage pre approval.

Don't forget, if you use up your cash to pay off debts now, the cash is gone.

Just remember, when it comes to paying off debt vs. saving for a down payment, it is a bit of a balancing act. You need to coordinate the two. Both are important and you need a reliable mortgage pre approval to help you decide.

Best wishes and good luck,

Ask Kate how to get the best mortgage rates
Ask Kate

P.S. You probably already know this but be careful when shopping for a lender that your credit does not get pulled multiple times. Here are some great tips to fix a credit score.

How To Build, Strengthen and Recover YOUR Credit

Can I handle a Mortgage Loan Modification myself? The answer is yes, but...

Quick Facts - How To Contact Major Credit Reporting Agencies.

Improve Credit Rating - Ask Kate how much you save with improved credit.

Have you seen yours yet? Six ways to fix your credit score!

This year, Wilson discovered protecting his identity involves credit report monitoring.

Ten step plan to getting your credit in shape - Fixing Bad Credit.

Saving your home - 8 Strategies To Stop Mortgage Foreclosure.

Credit Rating Q and A - Questions & answers with credit repair information.

Return from Contact Kate For Strategies To Buying A First Home to Get Your Best Mortgage Rate

Click here to add a comment.

You can also ask Kate about your mortgage at How to Improve Your Credit Rating with Amazing Success.

Recent Articles

  1. Kate's Mortgage Rate Report August 11: Rates Bouncing Like a Ping Pong Ball

    Aug 11, 16 10:49 AM

    Kate's mortgage rate report for the week ending August 11, 2016: Rates Bouncing Like a Ping Pong Ball
    Mortgage interest rates have been bouncing like a ping pong ball: After last Friday's strong job report began pushing up mortgage rates, the market is now hinting at a reversal, with the 30-year hover…

    Read more

  2. Ask Kate how to avoid unauthorized mortgage rate extension fees

    Aug 11, 16 10:18 AM

    Ask Kate how to avoid unauthorized mortgage rate extension fees
    Ask Kate how to avoid unauthorized mortgage rate extension fees:

    After locking in her rate, the bank sent a Texan homeowner, Laura, notification of several thousand in fees that she must pay in order…

    Read more