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MrsAngelo
Posts: 5
Registered: ‎07-06-2008
0

Pay off debt management program before applying for a mortgage

Hi Everyone

 

I am going to try and get pre-qualified to buy a home. I enrolled in a debt management program 2 1/2 years ago. I had about $24,000 in cc debt. Now I have about $6000 left in the dmp. I wanted to know if I should pay off the last $6000 or add that money to my down payment and continue with the monthly payment of $644 until it is paid later this year. I feel like paying it off would be the optimal solution but I just want to be sure its worth it. Any help would be great. I should have looked into the dmp before I got into it because I reallly didn't need the program since none of my payments were late.

 

Thanks!

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Shogun
Posts: 12,952
Registered: ‎04-15-2011
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Re: Pay off debt management program before applying for a mortgage

Just going to go by what "I" would do.  I'd pay off the DMP.


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Kozmo
Posts: 318
Registered: ‎07-08-2012
0

Re: Pay off debt management program before applying for a mortgage

Dmps are not only for people who are late. If you had high rates, then it's beneficial if your goal is to payoff your credit card debt and start over. $24k is a lot in cc debt to even be paying 18% interest on, let alone 25-30 like a lot of people have.

Can you do it on your own? Sure. But these programs help keep you in line.
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bettercreditguy1
Posts: 749
Registered: ‎02-11-2012
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Re: Pay off debt management program before applying for a mortgage

I second that motion. Pay of the dmp FIRST. It will look a lot better on your behalf. Plus, you won't need to worry about becoming late or a default.

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