Both myself and my partner recently graduated from college and will be starting new careers this year. If everything goes as planned we are looking at buying a new home at either the end of this year or in 09.

We currently make $38,000 between us, with most going to living expenses. I have $6,000 in student loans, $2,000 in cc debit, & $8,000 car loan, while she has $20,000 in student loans and $1,500 in cc debt. My credit score is above 750, and hers is around 700. With our new careers we should be making $100,000 together our first year, going up to $200,000 in 5-8 years. We are looking to spend $350-400,000 on a home or land.

We plan to pay off all of the credit card debit prior to applying for a home loan. But as far as student loans and the car loan, is it better to pay them off or put the money towards the down payment?

With only having the jobs a year, will that hurt us getting a loan?

With the market the way it is, would 09 be a better time to buy?

Since you aren't making $100K a year yet, you have a lot of debt. Student loans under Coverdell have a 10 year time window to pay off the debt, so you should just make the payments. Pay off the CC debt once you get your new jobs. It will take you at least a year to pay it off, and it will take you at least a year to save up to 20% down payment on a house (so you don't have to pay Private Mortgage insurance). You are better off to wait until 2009 before buying.

Oh.. Another old thread regarding on my post.. Hehe.. I hope this might help you guys..


http://www.financeforums.org/f12/195...html#post34579

2009 will be a great year if you are planning to get a home. if you are asking for opinion, i will not behave like a finance guy. i would suggest you to write-off your student loans and other loans, before buying a property. that ways you will just one thing to worry
all the best for the fulture. great planning

i think you should go for student loan because its debt rates are lower as comparison to the other loans but at athe end decision is yours.