Qualify for Mortgage with Credit Card Debt?
by Mortgage Rates on Thursday, November 11th, 2010 | 5 Comments
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It all has to do with your debt to income ratio. Different lending institutions use different methods to calculate this. Usually it’s around 35%-40% of your net pay, meaning add up your monthly payments for all debt, not utilities, and compare this sum against 35-40% of your net pay. If you already exceed this amount, you will be overextended. Ever how much below this amount is how much room you have for your new home monthly payment.
I dont think you think you will have a problem. You should consider getting a 0% card with a score like that I would go for the amex blue it is zero percent for 15 months
http://www.gozeropercent.com
I have a very modest income.
I have decent credit too. My score averages 724.
I got approved for a mortgage because I have only 1% debt to credit ratio! I paid off all the cards before I applied for the mortgage. All the places I applied were impressed.
Pay down that debt as soon as possible. It will help you tremendously, and you will even get approved for higher amounts.
As long as your credit card , car payments are less than 15% of your monthly income then you are still good. Just get a 30-year fixed rate and not the adjustable rate mortgages that many people are losing their homes on.
Hi,
I used “Credit Solution” to settle my debt and improve my credit score.They managed to reduce my debt up to 58% .It’s legitimate.I came across this company on NBC News Special Edition.Check it out here:
http://doiop.com/028gog