FHA Loan -- Wait another month to apply to reduce DTI?

[RebuildinginSTL]

I am looking to apply for an FHA mortgage within the next month or so and have 3 cards with a balance (all less that 30%). One of them I will get to a zero balance within a month ($500/$2900 now) and this would reduce the debt part of my DTI by $25. However, it is only .3% of the DTI percentage.

My question is: Should I wait to apply for mortgage until I get that card to $0? The card will definitely be $0 by the time I close but I don't know if they would repull the credit to get the updated DTI or if I could just show them proof. Is it worth waiting another month to apply for this improved DTI or potential score increase?

[Mortgage-Specialist]

You can apply and and if need be, they can always verify that it's been paid with a credit supplement. There wouldn't be a need to re-pull the credit unless your scores increased and you wanted them to use the higher score for better rate. Keep in mind, not all lenders abide by this

[dragontears]

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@RebuildinginSTL wrote:

I am looking to apply for an FHA mortgage within the next month or so and have 3 cards with a balance (all less that 30%). One of them I will get to a zero balance within a month ($500/$2900 now) and this would reduce the debt part of my DTI by $25. However, it is only .3% of the DTI percentage.

My question is: Should I wait to apply for mortgage until I get that card to $0? The card will definitely be $0 by the time I close but I don't know if they would repull the credit to get the updated DTI or if I could just show them proof. Is it worth waiting another month to apply for this improved DTI or potential score increase?

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Depends on what you current DTI is and what your mortgage scores currently are. 

FHA has pretty liberal DTI requirements and after you meet the minimum score requirement higher scores don't equal lower interest rates like it does with a conventional loan. 

[RebuildinginSTL]

My DTI is currently 10.23% and with the card paid down it would be 9.86%

[Mortgage-Specialist]

Can't get any better than that

[dragontears]

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@RebuildinginSTL wrote:

My DTI is currently 10.23% and with the card paid down it would be 9.86%

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Unless you want a crazy expensive (for your income) house you are fine with applying now, that DTI is nice already