I am working with a mortgage company and was given a game plan with credit cards to pay down to a specific amount. My original plan was that I was going to use part of my bonus towards my down payment. Instead, I am now using my bonus to pay all of my credit cards down to the game plan amount or more to have a better DTI. I will not have a down payment from my bonus. I do have $2200 that I can get from my 401K but I'd have to save the rest.
Should I just wait and save? Or could I go with NFCU which does 100% financing? (i.e. my lease ends June 2015)
I am open for opinions or suggestions.
I'm no expert but I can tell you what I think and what I did (a lot based on advice offered on myfico.) My utilization was at 65%. I used extra money to pay it down. Now I am not paying all of that interest, my scores went up, my DTI went down, and I will qualify for a better rate on a mortgage. With the limited info you gave, I would pay down the cards to under 30% (and pay off some if possible) and then start saving every penny after your monthly expenses. Again, that's just my opinion and what I would do. High DTI and lower scores will cost you a lot in the long run.
Starting Score: 660My utilization is about 60% and I paid off 4 and the rest I paid 50% or under. I agree with you about the saving after monthly expenses. I have completely stopped using my credit cards and not spending on entertainment or eating out. I work from home everyday so I'm saving on gas. I'll be saving a lot.
bumpity bump
The builder would pay the closing costs. I would have money to pay for moving expenses. My original question is since I have used my down payment on paying down my credit cards, would it make sense to save for a down payment if I could just go with NFCU which does 100% financing? I wasn't saying that I wasn't going to have no money at all.
I am feeling a little judged here when it was just an apple and oranges type question. Could I get a response from a person who deals with mortgage financing?
@StrawberryIce wrote:I am feeling a little judged here when it was just an apple and oranges type question. Could I get a response from a person who deals with mortgage financing?
Hello,
I'm not an expert in this field but as you can see I have been on these boards for some time. I just want you to know that the answers that you are getting are not people trying to judge you they are just wanting more info so that they can give you the best best advice possible. You will not find a better place to get answers to your questions, however be prepared to give as much info. as possible and also be prepared for suggestions and opinions because that is what this forum is for. CONGRATULATIONS, on your soon to be new home and WELCOME to the MyFico Forum! 
Thank you App_Addict for your positive comment. I do not know what extra details that would be needed for my type of question. I feel like I am getting no where on myFico. ((Crawls back to the garden))
