When buying a new house which is better?

[WDWisTheBest]

Pay off the truck first , then the student loan. Then save until you have at least a 20% down payment for the new house.

First and foremost, I would pay off the vehicle loan. I then would consider paying at least something on the student loan, if that is possible.

Do yourself a favor and don't buy the new house until you sell the old one.

I would sell my house before buying a new house. As everyone knows, it is a buyer's market and this could continue for at least two more years.

 

[snowywhite89]

A larger down payment, or less debt?

DH and I do NOT have huge incomes, but own our current house free and clear (and would sell it after buying a new one, although our market is poor right now, so it might end up only being rented). The only debts we have are 8K on his truck loan and 10K on my old student loan (currently in forbearance since I'm underemployed). We have 35K sitting in the bank from the sale of our last home 5 years ago.

We are getting a rather unexpected amount of $$ back from our taxes, and are debating paying off the majority of the truck or plumping up our savings. We are looking at buying a new home within the year, and wondered which would matter more to the loan company, having less debt or a larger down payment?

Opinions?

TIA!
Terri

I would pay off the truck and student loans. When you get ready to buy another house I would get a HEL on the free and clear home to use as a down payment on the new home. I would put down 20%. Then use the rent to pay back the load or put the house on the market (after you get the loan) and pay off the loan.

 

[yoopermom]

Thanks everyone, for the advice. Yes, our credit score is over 800, and we "battened down the hatches" when we sold our house 5 years ago, built the current small one we're living in, and saved the profit for our next home with acreage.

After much discussion, DH and I are planning on using the tax $$ and some other (nonhouse) savings to pay off the truck, and some other savings to pay off the majority of the student loan (the rest will be paid off with an inheritance that will be coming within the next year).

We won't buy this new property unless we get it for an excellent price. We also won't "give" our current house away (despite not having much invested in it since DH built it himself). I would bet it will end up renting, which would be fine. As was mentioned, we can use the equity in it to help buy the new place, if necessary, as well.

I sure appreciate all the advice. We've had a lot of rainy years (not days) here in Michigan, but I sure hope it clears up, eventually!
Terri

 

[Vijoge]

Thanks everyone, for the advice. Yes, our credit score is over 800, and we "battened down the hatches" when we sold our house 5 years ago, built the current small one we're living in, and saved the profit for our next home with acreage.

After much discussion, DH and I are planning on using the tax $$ and some other (nonhouse) savings to pay off the truck, and some other savings to pay off the majority of the student loan (the rest will be paid off with an inheritance that will be coming within the next year).

We won't buy this new property unless we get it for an excellent price. We also won't "give" our current house away (despite not having much invested in it since DH built it himself). I would bet it will end up renting, which would be fine. As was mentioned, we can use the equity in it to help buy the new place, if necessary, as well.

I sure appreciate all the advice. We've had a lot of rainy years (not days) here in Michigan, but I sure hope it clears up, eventually!
Terri