Posted on: 05th May, 2012 11:11 am
Hi,
I'm looking trying to determine what level of home I can finance and using one of those on-line debt to income ratio tools to help identify the type of home I can purchase...just to give me a general idea and to make sure I'm not looking too high. Should we consider our monthly credit card expenses as debt if we use our credit card for all purchases (we don't use any cash, to gain points) and pay those bills off in full each month?
If I put in the monthly expenses it says I can't afford any home at all...actually say -$19K, but if I leave it out it says I can afford at $600K+ home.
Any thoughts?
I'm looking trying to determine what level of home I can finance and using one of those on-line debt to income ratio tools to help identify the type of home I can purchase...just to give me a general idea and to make sure I'm not looking too high. Should we consider our monthly credit card expenses as debt if we use our credit card for all purchases (we don't use any cash, to gain points) and pay those bills off in full each month?
If I put in the monthly expenses it says I can't afford any home at all...actually say -$19K, but if I leave it out it says I can afford at $600K+ home.
Any thoughts?
Hi cagoo,
As far as I can understand, your credit card expenses will be considered as your debt and will be taken into consideration while calculating your debt to income ratio.
As far as I can understand, your credit card expenses will be considered as your debt and will be taken into consideration while calculating your debt to income ratio.
I suggest you plan ahead.
Forget the points for a couple months.
Pay off all cards in FULL at least 30 days before you apply for a mortgage so that all cards have a zero balance and zero monthly payment due when the mortgage compnay gets the creidt report.
Get the mortgage and close on the house. Then start using credit cards again to get your points.
Simply decide if you can miss points for a couple months so you can buy a house.
If you prefer to have the points, do not buy a house.
Forget the points for a couple months.
Pay off all cards in FULL at least 30 days before you apply for a mortgage so that all cards have a zero balance and zero monthly payment due when the mortgage compnay gets the creidt report.
Get the mortgage and close on the house. Then start using credit cards again to get your points.
Simply decide if you can miss points for a couple months so you can buy a house.
If you prefer to have the points, do not buy a house.
