As long as the property is paid in full I don't see how it could hurt you. You might qualify for more too. On another note I do know of a development in Victorville that is offering in-house financing which might allow you to qualify for a little more. If you think that might be of interest to you, let me know.
The Carrabba Group
Keller Williams Hollywood Hills
Keep in mind that most lenders are being very tight/strict in qualifying due to the current credit-crunch...But unless you have a rich BF or Daddy, you should try to keep your credit purchases/debts down! so you don't hinder your loan potential. Most likely if you have an experienced and knowledgeable Lender/ Broker/ agent they can advise you and direct you in the right direction, which is to get pre-approved for an FHA loan with a direct lender and work with a Realtor that knows the Market/area that you are interested in... I know the Victorville/ A.V. area and I own a property in VtVl and have relatives in Apple...and seen some great deals on home as low as $56k, call me or check out my website http://(www.coe-realty.com) for links to repo sites that can hopefully help in finding your dream home!?
Carlos Orozco, Broker-Realtor
Big purchase is a relative term.
If you are serious about buying a home, you should wait till you buy your home. Paying of debit is good, but keep in mind you may need money for closing costs, down payments etc.
I can do a free credit check provided you fill my online application.. This is a secure website and no information will be not sold or traded to others. I am Loan Officer and will do the loan myself. I do loans only in California. I am a financial guru.
Please go to my website http://bestcaloans.com and click on Secure Loan Application.
My name is Hope Gillis, I am an realtor with Coldwell Banker Alliance.
In answer to your question,
The lenders run your credit so you can be pre-approved.
Then they run just before clsoing your transaction again.
No, you should not make any large purchases that effect your debt to ratio score.
Paying off anything you owe is a plus, keep records.
Owning another property will show as a liability and a debt unless it is paid in full or show income, or you have enough income to cover the debt each month.
I sell all over California, so if I can be of any assistance, please let me know.
I am not a lender and rules change daily it seems, always a good idea to make sure you have a good lender in place and have everything in line with them before you start looking for a purchase.
Hope this answers your question.............
Coldwell Banker Alliance
Without know your entire situation (income, bank balances, monthly payments, credit score, sale price of new property, taxes, etc) it is impossible for anyone to tell you exactly what makes sense for you.
I am happy to go through that with you, no obligation. Call me at 310-741-7179