Credit Limit and Mortage
Hello everyone,
After reading online and meeting with a person at the bank, I have to reach out to this forum for some clarification.
I'm looking to pre-approved for a mortgage, however there's something I don't quite understand.
What I've been reading is that the lender will look (besides credit score) at your credit limit because it counts as potential debt.
I have 3 credit cards, adding up to a credit limit of 22900 so my debt breakdown according to TD Bank's mortgage calculator, comes down to $675/ monthly; so this is what they consider minimum payments for potential debt.
My current debt is $2900
When I talked to a person @ a bank (mortgage advisor), he suggested closing two credit cards and applying for a line of credit, saying is good to have credit cards and line of credit.
If I close two credit cards and apply for a line of credit, wouldn't that keep the same or close to my actual credit limit?
I know that before closing any credit cards, I have to make sure that when I do my debt to ratio does not go over 30%.
Can someone point me in the right direction? What would you do in my situation?
Please let me know if you need any further information.
Thanks in advance for your time and help.
After reading online and meeting with a person at the bank, I have to reach out to this forum for some clarification.
I'm looking to pre-approved for a mortgage, however there's something I don't quite understand.
What I've been reading is that the lender will look (besides credit score) at your credit limit because it counts as potential debt.
I have 3 credit cards, adding up to a credit limit of 22900 so my debt breakdown according to TD Bank's mortgage calculator, comes down to $675/ monthly; so this is what they consider minimum payments for potential debt.
My current debt is $2900
When I talked to a person @ a bank (mortgage advisor), he suggested closing two credit cards and applying for a line of credit, saying is good to have credit cards and line of credit.
If I close two credit cards and apply for a line of credit, wouldn't that keep the same or close to my actual credit limit?
I know that before closing any credit cards, I have to make sure that when I do my debt to ratio does not go over 30%.
Can someone point me in the right direction? What would you do in my situation?
Please let me know if you need any further information.
Thanks in advance for your time and help.