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Condo Conversion - First Mortgage Help


ianders1
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I need some advice. I just moved out of my apartment two months ago because it went condo. Now my new place is going condo. I would like to buy, but I'm struggling with how to do it. I make about $75-80k and my wife will finish law school in a year, doubling our income. The condo will probably go for $250-300k (we pay $1635/mo rent), but I only have about $4k in the bank, and having just moved, I've got about $2.5k on my credit cards. I also have $2k tied up in a secured card.

Should I pull some of the money out of savings and pay off all my cards to increase my score in the hopes of getting a better mortgage (with little or no down payment) or do I hold onto the cash for a measly 1-2% down payment.

Any advice you could give would be greatly appreciated.

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I would suggest that you keep your cash, at least for a cushion.

One major consideration however is that if the condo complex is just now being sold, there are issues that will prevent you from getting a prime rate loan, due to the length of time the Condo assn has been active, and due to the number of condos sold vs available.

Charles

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