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Zachary Dylan Nelson
  • New to Real Estate
  • Clarksville, TN
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Debt to income

Zachary Dylan Nelson
  • New to Real Estate
  • Clarksville, TN
Posted

I've been educating myself on real estate for the past 3ish weeks or so but I have about 10k worth of credit card debt should I try and pay it all off so I can get my credit score up and have better approval odds for my first investment loan (I would be using my VA loan). Or should I try to find a deal now and start the loan process? I,d love to hear everyone's opinions and thoughts!

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Nathan Gesner
Agent
  • Real Estate Broker
  • Cody, WY
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Nathan Gesner
Agent
  • Real Estate Broker
  • Cody, WY
ModeratorReplied
Quote from @Zachary Dylan Nelson:

You should be debt-free before you start investing. If you aren't disciplined with what you already have, you won't be disciplined with anything new.


  • Property Manager Wyoming (#12599)

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Robin Simon
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  • Lender
  • Austin, TX
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Robin Simon
Pro Member
#1 Classifieds Contributor
  • Lender
  • Austin, TX
Replied

Agree on above - holding very high interest (presumably) CC debt should be first priority to pay off before buying the first investment property

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Theresa Harris
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Theresa Harris
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Replied

I'd try to pay it off as quickly as I could, especially if the interest rates on it are high.  Start by talking to a bank or whoever you plan on getting the loan from to find out how much you can borrow and what the costs are associated with that. Normally if you are not living in the property, you need a 20% down payment.