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what would be the best course.

Currently I rent. So pinching pennies come slower with a high rent and all utilities. I have good credit mid 700's, I have 2 jobs and doing OK. I do want to buy a condo in my area i am familiar with the building and area listing for under 70,000. Should I work to pay off my car and credit card debt (no late payments in 5 years) or should I work towards saving more for a larger down payment. Either way I have a year on my lease. I am never late on bills, I hate my landlords and I want out for good. by jenell.t33851 from Lancaster, Pennsylvania. May 5th 2015 Reply


Derick Condron (rightstartoregon)
#32 ranked lender in Oregon - 598 contributions

It will depend on your full profile. Some times paying off debt will help your ratios more than a down payment. The other option is buying rate down vs. putting the money towards a down payment. You have a lot of time and options to look at. I would discuss it with a local lender

May 5th 2015
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Jamie Ware (YourMortgageGuy)
#72 ranked lender in Pennsylvania - 44 contributions

You should save up for the purchase of your new house ASAP....You'll need 3,5% ($2450) if you want to use FHA. Or ($2100) if you want to use the 3% down!

May 5th 2015
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,240 contributions

Depends on whether you already have enough saved for the downpayment. Try to have credit card balances less than 30% of the limit before you apply. Total debt payments each month can make it more of a challenge to buy, it's the payment not how much you owe. Condo's can be more difficult to finance - depending on the specifics of the Regime and their finances.

May 5th 2015
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,722 contributions

Your credit score is within the acceptable range, and assuming you have at least 5% or more saved for a down payment, you can buy right away.. For both your jobs to be considered for qualifying purposes, you would need to have the 2nd job for at least 2 years, or if both are part time, you would need to have both jobs for 2 years or more.. waiting to save for a larger down payment will most likely be offset by increased values and rising interest rates.. in other words, by waiting, it could actually cost you more to buy in the future then if you purchase now.. Another thing to consider is the condo.. condos' are more difficult to finance since they represent a greater risk to the lender.. when the market falls, they are one of the first property types to decline in value, and conversely, when the market improves, they are one of the last to go up in value.. lenders know this and take special precautions when offering financing on them, so be prepared.. it might be best to contact a local mortgage broker now and let him look at your scenario as well as the complex and see if it's approval or if there might be any issues you need to address before actually buying.. this would give you time to work out any issues so when your ready, you can close right away.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

May 6th 2015
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I have a Full time Job and a Part Time job, I have had both for over 5 years and both together pull in the low 40,000. My debt to income ratio is about 35% (as long as my rent isn't a factor) I paid off all my student loans a few years ago (early). I owe just under 10,000 on my car, and have the 5% down for the condo and the requested Condo Reserve Fee saved. If I kept saving this year I could effectively pay off over 60% the car, or have enough for 10% down. Would the lower debt to income ratio be more favorable over the 10% down?

May 7th 2015
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,722 contributions

Having a lower DTI will not affect your interest rate.. but having more down payment will.. the reality is that home values are rising and so are interest rates.. if you wait a year, any potential gains you would obtain by having a larger down payment will be eaten up by the higher home prices and higher interest rates.. in other words, you put more down, and would still have a higher payment.. My nephew just has a very similar scenario.. he opted to pay the landlord a lease cancelation fee of 1.5 X Months rent.. and it's a good thing he did.. rates are 1/2% higher than when he signed and his property has already risen 3% in 6 months.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

May 7th 2015
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,240 contributions

FYI, your DTI calculation includes the expected payment on the home you are purchasing - including the regime fee (even though you pay that directly yourself). If you can qualify now agree with others recommending you not wait if you can buy sooner rather than later. (As long as no other reasons to wait.)

May 7th 2015
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