Just curious. But we have one credit card to pay off that has kind of a high balance on it. That is our only debt though, no car payments, no student loans, stable jobs, and excellent credit. I wasn't sure if we had to be 100% debt free to be approved for a mortgage. I know nothing about buying a home because I've never done it before but I want to.Answer Question
Asked by Anonymous at 7:13 PM on Feb. 20, 2011 in Money & Work
Answer by jamesonjustines at 7:16 PM on Feb. 20, 2011
You can because banks look at your debt to asset ratio. You need to own more then you owe. They also want to know how much the mortgage would increase your debt to asset ratio
Answer by RyansMom001 at 7:16 PM on Feb. 20, 2011
Answer by admckenzie at 7:17 PM on Feb. 20, 2011
We had some debt ( car payment and credit card) when we bought our house. I think they did a debt to income ratio, so if like 30 or more percent of your monthly income goes to debt they won't approve you or something like that. That was just an example I don't know what percent they use and I am sure different banks have different qualifications.
Answer by lilysmom2607 at 7:19 PM on Feb. 20, 2011
Answer by Kari126 at 7:59 PM on Feb. 20, 2011
Read some of repsonses here.
Good luck in making an important decision in buying a home.
Answer by musicmom08 at 5:34 PM on Feb. 21, 2011