Do NOT close your credit cards, especially when buying a house. Closing your credit card accounts will cause your score to drop.
Regarding paying down balances; you need to follow the direction of the loan officer you are working with. In some situations it may be warranted to pay a balance down to achieve a specific goal, but in general you should not do this on your own.
Find a good loan officer in PA to assist you: if you would like a referral, please contact me.
If your score is 670 and you are looking for an FHA loan your score is fine. If you are looking to get a conventional loan you'll want to get that score to at least 680 ASAP. I can work with you on how to do that if you'd like. Paying down credit cards will lower your monthly expeditures but you may want to save your money for the house instead of paying the credit cards down. It all depends on if your debt ratio (monthly debts divided by monthly income) require you to pay down credit cards or not. A side note: closing cards actually hurts your score a little bit (not much). It's better to keep your cards open with a zero balance because one of the factors that goes into your score is the "credit used" vs. "credit available" ratio. You want to keep the "available" as-is but paying down your credit cards can help your score as well as your affordablity (debt) ratio. I'd be happy to pre approve you if you don't already have a lender that is knowledgeable and that you trust.. Always feel free to call or e-mail. Good luck!
Chad email@example.com 610-622-2212
I understand what you're asking, but let me try and answer it this way. Mortgage lenders want to see a good dept to income ratio. So if your income is high enough to support a mortgage and the other debt there would be no need to pay the other debt down. Granted I am not a mortgage lender, but if you'd like to call one I can provide you with a number which you can ask direct questions without committing yourself to a mortgage.
Hope this helps
The Marie Souza Team - Top Selling on Cape Cod
Phone: 508-790-2000 Fax: 508-790-4005