Credit Score: 765, Debt-to-Income: 35% --> worth lowering by 3%?

FHA loans require 3.5% down. You can do Conventional loans upto 95% but you also will have mortgage insurance. If you want the best rate and lowest cost without mortgage insurance, then you would want to put down 20%. For income and debt to income ratio, take your gross earnings and multiply by 45%. This would be the max debt to income ratio a lender will allow. So if you gross 10k a month, then 4500 is your max debt you can carry, including mortgage payment, taxes, insurance, mortgage insurance, car payments, credit cards etc. So if you are at 35% now, throwing in a mortgage would increase that %. Feel free to contact me and I can explain more.

Hello Mr Sebastian, thanks for your question. Your debt to income ratio is fine and you wouldn't need to pay down anything. I am assuming that we would not be adding an existing mortgage payment to your debt ratios, in case a current residence did not sell prior to taking out a new mortgage. Your credit score is excellent also. Lowering your debt ratios and increasing your scores would not have any impact on pricing.I would hang onto the money for the down payment or moving expenses. You can easily obtain financing with 10% down, and most likely only 5% down. FHA is always an option also with 3.5% down.Please let me know if you have any additonal questions.

Your debt to income ratio is fine (current conventional underwriting guidelines call for a total debt to income ratio of no more than 45%). You will need cash after you buy your home for all the trips to the home improvement stores for lawnmowers, hoses, edgers, etc.. There are many loan programs available that only require a 3.5% down payment. And if you are a veteran, NO down payment is required. Your credit profile is excellent, so get pre-qualified with a local mortgage professional and go find your house!