Pay off Personal loan before Mortgage?

[Anonymous]

So this is my first post on the forums after being a longtime lurker to help improve my scores...
I have a personal loan (5700 of 7500 left) that I was considering paying off before applying for a mortgage to help with my DTI. My mortgage scores according to myFico are EQ and EX 760’s and TU 709. Really not wanting the 760s to drop much or at all. Any thoughts on if it’s a good idea? Or I wonder if I wait until I talk with the mortgage company and see if I paid it down to where there would only be a few payments left or something where they wouldn’t count it towards my dti? Or should I do that before applying for a mortgage? This is my first mortgage for me and my family and I’m hoping not to mess it up!
Also willing to take recommendations on mortgage companies!
Thanks to anyone willing to throw in their few cents!

[DollyLama]

IF you have any other open loans, auto, then paying it off will help the DTI. 

IF it is your only open loan, pay it down to around $660 and make sure that balance (660 includes interest) reports, your scores will rise. But from your post, it would seem the payments are quite hefty, and the loan could be paid off before finding a home, contract and closing. Your LO could advise at this time of application if your current monthly payment is crushing the DTI. 

What are your DTI percents now and proposed in the price range you expect to pay  say $1400 including PMI, taxes, insurance? 

Are you a veteran? 

I can not recommend any lender. 

[coreysw12]

It would be helpful to share what your current DTI is.

What is your monthly income? How much are your monthly debt repayments? And how much is your monthly personal loan payment?

If you can answer those 3 questions, you'll get much better answers.

I do agree with the post above - if this personal loan is your only installment loan, then paying it off might actually hurt you, because your "credit mix" will suffer. An ideal credit report has 2+ revolving accounts and 1+ installment account.

It might be worth looking into refinancing your personal loan so that you have a lower monthly payment, but don't altogether lose the open installment loan from your credit report.