Did I better my chances or ruin my chances?

Question

I want to purchase a house. Recently, I paid off my vehicle, paid my credit cards off, and paid another vehicle off with a home equity line of credit loan. This means I have two mortgages making my payments at $1,023.00 a month. I am looking to purchase a house because I always wanted a house instead of a town-home which I have been living here for 10 years. The second reason why I want to make this move is because the property next door is rental property and since it has been rental property the landlord tend to rent to fighting couples in other words usually to a woman with kids and then she moves her boyfriend in and she works and he doesn't. I seems to be a pattern. I do not feel comfortable living next door to them. I think they are on drugs and they yell incoherently and it doesn't make since. I think he thinks I had been complaining about them to the landlord, but the neighbors on the other side of him complained to the landlord about their behavior. Now he's watching me. So getting back to my question did I better my chances or ruin my chances in being approved for a loan for the house?

Answer 1

your post is not clear whether or not you now own the house. If so, you are on the property ladder and this should be seen as a good thing. Everybody at some stage has dealt with the annoying neighbour. Try to stear clear and if they really make your life a hassle, keep complaining and get them out. You obviously have a friend in the other person who complained so use that to your advantage.

Answer 2

just don't close your accounts .that's what hurts you.the banks like to see you using your credit.the best way is to buy something small and pay a little more than theminimumn amount.the car was ok bc it lowered your debt to income ratio's.

Answer 3

You bettered your chances. Paying off debts works in your favor. Using a HELOC to pay off a vehicle keeps the same amount of debt, but if you traded higher interest rate debt (the vehicle) for lower interest rate debt (the HELOC), that's generally better. It does get complicated at times, since borrowing more than half your credit limit (on a credit card) will worsen your debt. HELOCs are supposed to fall into a different category, same as mortgages, where it's not detrimental to be close to your limit. However, HELOCs aren't always "coded" properly by the lender.

Best thing to do at this point would be to go to a good mortgage broker and have him/her pull your credit. Good ones can provide advice on what to do to improve your credit further. One thing you do not want to do is terminate any credit lines, especially credit lines you've had for a long period of time. Those will work in your favor, not against you.

Hope that helps.

Answer 4

I was happy to hear that you had paid off your debts like the vehicle loan. Then i was sad to hear that you had not really lowered your debts.  You had just switched them to a home loan.  So you are in the same position as before.  You have the same amount of debt.  So the answer is NO, you did not ruin your chances.  THey are exactly the same as before. /

Answer 5

Keep in mind that purchasing a home does not mean that you will not have noisy neighbors.  People move in and out of neighborhoods all the time.  So before buying, look over the hood at different time of the day and night, observe the neighbors, are they friendly, keep to themselves, or are they noisy.  55+ areas are somewhat less noisy.