I talked to a mortgage lender today who proudly told me she has 7 yrs experience in the field and knows what underwriters/processors think.
So I put to her the question - pay down debt or save money?
Her reply was pay down debt immediately, as fast as you can, as much as you can!! She knew the monthly debt payment, at most, is about $220 on an interest free loan.
Her processor said, given our scenario, save money, as fast as you can, as much as you can!!! Forget about paying down the debt. The reason -- are you ready for this -- was because CB only update once every three months or so! So paying down the loan would have NO effect on my FICO score if/when we go to closing in March!
Can you believe she said this??? I'd say she misspoke, but then she repeated the three months thing and she confirmed it when I repeated it to her...
It was a little giggle (after I hung up) and helped relieve some stress. I think she was wrong...but it was nice of them (the processor and lender) to give me some advice.
