This is a YouTube video titled "#homeloans #homebuyer #fhaloan #interestrates #firsttimehomebuyer" containing a financial advice talk from February 22, 2023. The speaker explains strategies related to paying off credit card balances to optimize credit scores and debt-to-income ratios in the context of home loan applications.
People often want to pay off their credit card balances to either help their credit score or their debt to income ratio. But it's important to know that by just paying the balances off up front, that doesn't always get you the best result on your credit score. Sometimes leaving a little bit of a balance on there can actually get your score higher. That's why it's important to let us take a look and guide you through that. We have direct access to the credit bureaus. They can show us the blueprint on how to get your score the best way possible. And sometimes you can hold a little bit of money back. You don't have to pay the balances down as much. And for the debt to income ratio, just by paying your credit cards up front doesn't remove them from the dti. We still have to account for it because it's still an open credit card. The little trick is you have to pay it at the closing of the loan. So let's say the closing costs are 10 grand and you have $2,000 of credit card debt. You would bring $12,000 to closing. We would assign that extra 2 grand to your credit cards. And only that way is how you remove it from your dti.
