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Mortgage DP or pay down CC debts?
First question here so bear with me. I am wanting to buy my first home in the next few months. I looked into it in January and my low credit score was 517. I've done some work since then and Credit Karma tells me the TU score is now 623. I expect it to go up about 20 points in the next few weeks as I take care of a collection (yes, I am trying PFD). Other than the one collection I've got a few bills 30 days overdue in the past 9 months or so, my biggest problem (it seems) is with my credit to debt ratio. It's high.

I am working a very small PT job in addition to my regular job and I am guaranteed to gross about $5700 over the next 7 months from it. I intend on using this to pay down some of my credit card balances. I will also be getting a $5K bonus from my regular job in November. I've got about $4K in savings that I planned on using for a down payment on the house.

My question is, in terms of getting a mortgage, would it be better to use all of these extra bucks to increase the down payment (which might help my CS/mortgage chances) or towards paying down the debt (which might help my CS/mortgage chances)?

If it helps, I live in a relatively low income area and a really, really nice house with property can be had for $79K. I've seen some I liked for as low as $35K but they need a little work or are in a neighborhood it wouldn't be safe for me to live in.

Any advice would be appreciated.

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