I'm going to buy a house much lower than what my LO currently believes I can afford. I'm hoping to find a house in Jan/Feb and close in March/April. By that point, the financial plan is to have about $20,000 in savings with a max price of $200,000 (actually looking more in the $145k to $160k range). LO said I need at least 3% + closing costs for FHA. I won't qualify for any grants/assistance. My mid mortgage score is in my signature; I followed some of my LOs advice which her program said should give me a 19pt bump. The scores are going to be rechecked in December.
Aside from a small revolving balance, I have $6k in student loans and $5k in an auto loan, with combined monthly payments of less than $400.
So, question is: I know that larger down payments are better, but in my situation would it be of any use to me to use some of the excess to pay down other debts? I'm unsure if it's the amount of the debt or the total revolving payments that matter more.
Or should i keep that extra money in reserve in case she says "I need you to pay this account to x% to get this loan", then throw it all at a house if I don't need it?
