Help with paying ccards off or trying to put 20% down for a home loan

[jamesparadise216]

got an issue i've been losing sleep over. I live in a burb west of cleveland Ohio. Just moved into a home that i'm going to purchase in the near future (like a month or 2). I will be buying the home for $99 grand. I hade $20 grand saved. We just hade a new baby boy 5 months ago hade to pay 3 grand in medical costs. So that dropped to $17 grand. So here is the rest i have two credit cards that were at 0 balances at that time but since we moved, i made home improvements appliances etc. So now i got almost $6 grand total on the cards. I hade almost a 700 credit score and my new credit statement dropped to 666 score. I'm concerned now about applying for the loan now (loan rates etc.) Should i pay off the cards with my saving and that will leave me with 11 grand to put down. I was concerned about my rate and not having the 20% down and probable having to get the PMI insurance. What suggestions can anyone provide me. Any Ideas at all would help. My theory is pay the cards so my score goes back up in the next month and apply for the loan cus revolving debt is the worst i know this for sure. I just cant save back the 3 grand fast at all. It would take forever. Help me out please.

Thanks
JP216

[StepRightUp]

My first instinct is to carve out of that 17K a 3-6 month emergency fund if you don't already have one.

Then I'd pay off what you can of the credit cards.

Whatever's left becomes your seed for saving for a downpayment.

I know this method puts off the house purchase, but it's puts you in a good position to be prepared for the unexpected and debt-free.

[bjl584]

The difference in a score of 700 versus 660 when applying for a loan probably won't be all that much different.

You said it will take forever to save up $3000. How long is forever in your mind? You already had $20,000 saved. How long did that take?

[disneysteve]

I wish people would come to this site and ask their questions BEFORE they go and get themselves in trouble.

I see all kinds of red flags in your post.

1. You had to dip into your "down payment" fund to pay medical bills which suggests that you have no emergency savings. BEFORE you buy a house, you need to have 6 months of living expenses saved IN ADDITION TO your 20% down payment.

2. You are using credit cards to buy things you can't afford.

3. You've paid to make home improvements and buy appliances for a home you don't own.

4. You are checking your credit score regularly which typically has some cost associated with it.

I think you need to do a few things.

a) Set aside your 6-month emergency fund.
b) Post your income and budget for review.
c) Forget about buying a house for right now. It doesn't sound like you are financially ready to do so. Taking on a mortgage may push things over the edge as far as managing your situation.