I'm looking to purchase my first home this year and taking advantage of the tax credit but not sure what I'll qualify for and what would be the better option in terms of FHA and Conventional.
Just checked my scores lately 5/23/09 and here's what I have
TU: 728 EX: 702 EQ: 730
Income is $50,000 yearly, 6% raise yearly, bonus has been in the range of $2000-$3000 yearly. I've been in the same area/dept for the last 4 1/2 years, no negatives on my credit reports, roughly $25k in my 401k. I have about 10k in the bank. 3 credit cards with a total balance of $8,500. Car payment monthly of $350 and monthly student loan of $350. Now I can Zero out all my credit cards prior to applying for preapproval but not exactly sure if this is the better option compared to just having the 10k in the bank as extra reserves. I'll have less then a 7k balance on my car by next february and plan to use the tax credit to pay off the balance on my car completely. Potentially leaving me with only the student loan every month. I've been renting the last 18 months, never a late payment. Any help or advice would be greatly appreciated.
