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When applying for a mortgage, what is better. pay down your credit card or have money in savings?
July 19th, 2010 
Posted in Personal Finance 
Tags: Applying For A Mortgage, Check My Credit, Credit Card, Credit Report, Creditcard, Debt Savings, Lot, Money In The Bank, Money Savings, Running, Three Months
Clifford
It depends on how your mortgage broker is doing the underwriting. If they’re looking mostly at your credit score than pay down your debt so you have a good score. If they are doing more of a manual underwriting process than I would do the 50/50 split, and show them what you’re doing and that you have a plan. Explain to your broker that you’re increasing your savings so that in the event of an emergency you will still have money to pay your bills (like your mortgage).