July 9, 2009

Pay Off Credit Cards Before Buying a House?

Pay Off Credit Cards Before Buying a House?

A reader (we’ll call him Robert to protect the real identity of this comment) wrote in to ask:

Q – “I am thinking of buying a house. I have a credit card with a balance of approximately $3,000. Should I pay this off before applying for a mortgage, or will that hurt my FICO score to pay it off and hacve no balance?”

A – About 60 days before you apply for your mortgage be sure to have that credit card paid off completely. The purpose of the 60 day advance is to make sure your credit reports are updated to show the zero balance. It’s somewhat comical that in the year 2009 you have to do it so far in advance in order to ensure that your credit reports reflect the balance, but these are the cards we’ve been dealt.

If you can do that then your mortgage application won’t have any trouble caused by credit scores.

If you have a question or comment about this, or any other article at this site, please feel free to click the comment tab and fire away. Your identity will be protected, and your email address will NEVER be published at this site. We look forward to hearing from you.

If you're looking for Cumberland real estate, we can help you with your home search. We also service Lincoln, Smithfield, North Smithfield, Providence and surrounding areas, as well as many communities in Massachusettes, such as Attleboro, North Attleboro, Foxboro, Franklin and Mansfield. To begin searching for Cumberland real estate now, simply click the "Search for Cumberland RI Homes" link at the top of bottom of this page.

Like This Article? Please Tell Others About It:

Buzz Up Digg Mixx
Print