Should I pay off my car loan or student loans before buying a house?
Paying down debt before buying can improve your debt to income ratio and help you qualify for a better loan, but it depends on your overall financial picture. Lenders look at your DTI, credit score, and cash reserves together. Sometimes keeping cash for your down payment and closing costs is smarter than paying off a low interest loan early. Other times reducing monthly obligations opens up your buying power. The specifics depend on your situation and a licensed lender should confirm, and Jon can connect you with one.
Specifics depend on your situation and should be confirmed with a licensed lender. Jon can connect you with one: text (623) 826-0888.
More on affordability and budgeting
- How much house can I afford?
- How much should I budget for maintenance and repairs each year?
- How much should I save besides the down payment?
- What will my total monthly payment be with taxes, insurance, HOA and PMI?
- What are typical utility costs in Phoenix for electric, water, gas and trash?
- What is a good debt-to-income ratio for a mortgage?
Meet Jon Hegreness
Jon Hegreness
REALTOR / Associate Broker · Howe Realty
AZ License BR540940000
Full-time Phoenix North Valley REALTOR and Associate Broker with 24 years in Arizona residential real estate. A negotiator and problem solver who works the way you would want a friend in the business to work: direct, on your side, and steady through the parts that get complicated.