Mortgage broker advising me to NOT pay off credit cards?
I will apply for a bigger mortgage now as my salary has significantly increased compared to when I had been approved for the mortgage mentioned above (380k)
The only debt I have is a car loan and 5 credit cards (limits are between 5k -18k). I have balances on each card for amounts between $1200 - $1500.
My credit score is in the very low 700's.
I have been really worried about these balances. Although they are not high....I assume that it is always best to have $0 balances.
I called my mortgage broker and shared this and he immediately advised me not to worry because he would place some sort of clause or statement saying that credit cards will be paid off when the sale of the home closes.
In terms of real cash, I told the broker I have funds avaible to pay off the credit cards but he advised me to keep the money in my account and not pay of the balances because I would be left with no real cash.
Is this true? Anyone been in my situation?