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Mortgage now or wait

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ajzjmsmom
Established Member

Mortgage now or wait

Trying to decide if now is really the time to get a morgage.

 

As of 1/13/14 had a median credit score of 720, paid off all my debt this month so utilization will be 0 after my CC statements run.

 

I gross $5070 a month in retirement, have $37,000 in savings and access to an addtional $47,000 in my 401K.  

 

I have spoke to a lender in the state I am moving to and he seems to think there will be no problen in qualifying me for a $200,000 mortgage.  There are plenty houses in the area I am moving to that fit this price range and real estate taxes are low.   I am planning on doing a 5% down conventional so as not to have PMI for the life of the loan.  

 

I had orginally planned on waiting anywhere from 6 to 12 months after moving to allow my credit score to go up more as to allow for a better interest rate but with interest rates potentially starting to go up, I am now rethinking that.  Seeing the possibilty that waiting for my scores to get higher after bringing my utilitzatioin down could potentially not save me any money over what I can get now.

 

Any input?

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ShanetheMortgageMan
Super Contributor

Re: Mortgage now or wait

From a qualifying standpoint your debt to income ratio looks fine.  Are home prices increasing in the area you are moving to?  If so, then waiting 6-12 months you'd have to pay more for what you could get today.  The difference between a 720 & 740+ credit score in terms of interest rates today is very marginal (basically you pay an extra 1/4 point to get the same rate), so I'd choose to purchase when it's the best time for you.

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