Hi there, thanks for your helpful responses in advance.
Here is my situation
I am looking at applying for a 100% VA Loan in the very near future to buy/build a home for around 300 K. Probably within the next 2 months or so. Already talked to the bank and just roughly looking at the situation they said they do not think there should be any issues.
I have a credit card with a $ 7000 balance. All my other credit cards have a 0 balance. A car loan on which I pay $ 400/ month on which I still owe $ 12000. Aprox $ 4000 in Savings. Fico score of 790 and 795.
My question is : I can't pay down my car loan any faster, but should I use my $ 4000 and bring down my credit card balance to $ 3000? It would not change my Fico score at all but maybe lower the debt ratio a bit, which the bank said in my case was in the lower 30s. Or should I hang on to the cash for now and pay my card off after I am approved for the loan?
Thanks:-)
