Does Paying Off Debt Before Buying a Home Make Sense?

If you're planning to buy a home, you may be wondering if you should pay off your credit cards, car loan or other debts first.

Sometimes that's a great idea. Sometimes it isn't.

When qualifying for a mortgage, we look at your monthly debt payments compared to your income. Paying off certain debts can improve those numbers and potentially help you qualify for more.

But there's another side to it.

If paying off debt uses most of the cash you've saved for your down payment, closing costs or reserves, it may not be the best move.

Every situation is different.

Before moving money around or paying off a large debt, I always recommend looking at the entire picture first.

If you're thinking about buying a home, give me a call. We can run the numbers and see what makes the most sense for you.

Sincerely, Marty Prince Mortgage Technology www.MortgageTechLoans.com Office: 714-289-1609 Email: mprince@socal.rr.com DRE #00887075 NMLS #246997