How to look the best for mortgage approval by April?
01-24-2013 09:27 AM
I just signed up today, bc i was curious about my FICO for mortgage purposes. My husband and I are looking to buy a house and get approved around April.
So here is the conundrum...
my Trans Union and Equifax FICO's from this site are 709 each. My Credit Sesame score, which i did before reading that it's not usually accurate is 724. My Husbands Credit Sesame Score is 742, but we haven't checked his FICO's. I am the bigger earner, if that matters.
The only reason why my score is 709 is high credit card utilization/balances. My current utilization is 38%. From now until march, i can get it down to 25-30%, and bring two accounts to zero, without touching any down payment money. I could go futher and pay more, but reduce my down payment.
For mortgage purposes, is it better to keep as much money as possible for downpayment or pay off more debt but put less money down? I would be getting a conventional mortgage.
Looking at the FICO ranges on this website and correlating interest rates, i am the 2nd from the top category, but the top category starts at 760. So, to me, getting to 760 in 3 months sounds impossible, so I assume it would be better to just pay what i can and not touch the down payment money. Please advise!