Question

We are selling our home to buy a bigger one because my mom moved in with us. We plan on doing that in May. I have no money set aside for moving costs, earnest money, or for inspections etc. We are probably getting around $5, 000 for tax refund. My husbands credit card has $18, 000 with a credit limit of $22, 000. Its his only debt. How much should I throw at the credit card to help with home loan approval and how much would you set aside for buying a new house expenses? We do have equity in our home and will have 20%+ for a down payment and his FICO score is over 700. My mom is buying the house with us so they'll use her income as well and her FICO is over 720.  

Answer 1

Personally, I’d go to a lender before paying on anything. See if you get approved and what it’s for. You can also talk to them about what’s impacting your ability to be approved for what you’re desired outcome is. So many things factor in, so before guessing, I’d start with an answer and a plan if that makes sense.  

Answer 2

Generally you want your credit usage below 50%.