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

With a Credit Score of 765 (came from Experian) and a Debt-to-Income ratio of 35% (came from TransUnion), I'm wondering if it's worth paying off the credit cards ($6,000) before trying to get a home loan? Using the online worksheet (at TransUnion), it looks like do so would only reduce the Debt-to-Income ratio by 3%. Not sure if that's worth it or if it's better to hang onto the money that would've gone towards the cards and put it in savings (thereby increasing assets). Advice? Thanks. One other question- any bets on whether a credit profile like that can get a person a loan w/ only like 12-15% down (instead of 20%)? Thanks. Ooh, just thought of another one. Does it work to put student loans in forbearance so that they wouldn't show up as monthly debts due? Obviously, there'd still be a balance owing (and they still accure interest so I know not a good long-term idea) but I'm wondering if it would improve the Debt-to-Income ratio when applying for a loan? by firtree23 from Tahoe, Nevada. Jun 27th 2011 Reply