The moment I figured out I was saving for the wrong thing

I had been putting every spare dollar into a big down payment fund for like 3 years, thinking that was the only way to get a house. Then my realtor, Sarah, casually asked about my credit score and debt-to-income ratio last month, and I realized I hadn't even checked my credit. I had a $200 medical bill from 2 years ago in collections that I totally forgot about, and it was killing my chances. Anybody else focus on the wrong piece of the puzzle and then get blindsided at the last minute?

2 comments

2 Comments

noahchen1mo ago

and then on top of the credit thing, you gotta remember your debt-to-income ratio is basically half the battle. i had a buddy who saved up 60k for a down payment but was carrying like 500 bucks a month on a car loan and credit cards. the bank looked at that and said his monthly obligations were too high. he ended up paying off the car early and ditching the cards just to get approved. sometimes you think the big pile of cash is the only thing that matters, but lenders are basically checking if you can handle the monthly nut.

wrenstone1mo ago

Right, because nothing says "I can handle a mortgage" like having to wipe out your savings to prove you can eat plain rice for six months. Your buddy basically had to become a monk just to get approved for a roof over his head.