While I don't personally don't have any automotive issues at the moment.. I'll be glad to listen to your situation.

Just so that you get the benefit of multiple perspectives.. you may want to give "just enough" information and open it up to the forum. There are MANY helpful individuals who would gladly share their expertise with you.

I understand also if the matter is more personal/private and if that's the case feel free to send a private message to whom you like.

PM message are not enabled yet, so i will use these posts for now.


I am getting married in April and looking to purchase a home in my state of NJ. I currently rent and want to begin the home buying process with a mortgage pre-approval. I have $18,000 saved up in bonds and CDs but I am basically living paycheck to paycheck to get by. I've really commited myself to saving more and paying off my $4,000 in credit card debt but the mortage companies want to evaluate my bank statements and Im afriad they will be discouraged by my inability to pay off my credit card and keep money in the bank. I earn a good income of $50,000 per year but I am not very good with my finances.

If I can chime in here, let me suggest that you wait to buy your home until you get your credit card debt paid off.

What's the rush?

Get all your debt paid off, save up a 3 to 6 month emergency fund, save for a down payment, and then purchase a home.

Don't get caught in the ole' "buying is always better than renting" click. This is only true if you have the money to do so.

I hope this info helps.

while paying of a cc is good advise it may be actually contraproductive when you are in good standing with the CC and have a good credit file, the bank will not object to the cc when it has always been paid above the minimum payment (the last 6 month at least). If you have about 2 to 3 month money to pay the mortgage, that should alleviate the usual pessimism and make sure to look at all assistance you can get from government programs

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Carminemb82,

It's understandable that you want to get yourself into a home because you are getting married soon. Here are my thoughts on the subject.

You CAN obtain a mortgage even though you still have a balance on a credit card. People do it all the time. They will simply take a look at your income vs. expenses and determine what they "believe" to be the most you can afford for the house.

Once you have a pre-approval.. I want to warn you.. Don't buy the biggest house you are told you can "afford" by the mortgage company. If they say you are "approved" for $200,000, that doesn't necessarily mean that you can AFFORD a $200,000 house.

A lot of people buy a house as much house as they've been approved for.. but then suddenly when January 1st comes around and the mortgage company has completed their escrow analysis (for your taxes and insurance), their payment shoots UP a few hundred dollars a month and they suddenly can't pay for it anymore.

Plus a house requires additional expenses unrelated to the mortgage: Lawn Care, Pest Control, Security Monitoring, furnishing, decorating, etc.

Like Alton said... take it slow... there is no rush.

It's very easy (especially after becoming newlyweds) to want to get into a house and start "nesting" in it, and buying lots of stuff for it to make it "your home".

So my advice is: continue talking with the mortgage companies regarding pre-approval...focus on paying off your debt in the meantime. When you are pre-approved..look for a 3 bed 2 bath house UNDER what they say you can afford, knowing that there are additional costs to owning and that your payment will go up after a year. Once you are in the house.. take it slow.. you have plenty of time to accumulate all the things you want.. pay cash for them.. don't get into more debt.

Hope this helps..

All good solid advice. I still lean toward the view that you would be better served paying off your credit card debt first. I've seen many people buy their new home with credit card debt on the books and before you know it they start using the card to furnish the house and then pretty soon they are only making the minimum payment because other things have come up. Next thing you know they have the credit card run to the limit and have incurred other debt along the way and now they are living paycheck to paycheck and barely making ends meet. Then the HVAC system needs repair and your in a bind.

I think you would be better off to buy the Software called YNAB, (You Need A Budget) and understand where every dollar goes that you spend. I would then get at least a one month buffer built up so you are not living paycheck to paycheck. You said yourself you are not very good at finances. This program is a great help to help you understand your finances and get them in control. Only after you have accomplished this and paid the CC debt would I encourage you to buy a home.

I'm not sure where you are living but I still think in a lot of areas across the country home valuations are still going down. By waiting you may in fact get a better deal on a house.

I hope this helps.

PMMM

Thank you all for the advice. I really really really appreciate it. I will continue to check back.

NJ on 50K with 18K down? Ouch! The last time I looked you have the highest cost of living behind Hawaii and California... even if you pick up a foreclosed property the taxes alone might be too much for your budget... crunch the numbers... look at real estate listings online that give you the current taxes and be sure to add in things like heating, electric (water & sewer) then when you know what the monthly cost of living will be check it against your budget...
I do feel for you because I've lived and rented in NJ and it cost far more than I ever thought it was worth.