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Hello, Fools!
My husband and I are about a year away from being ready to buy our first home. We are starting to research neighborhoods, and spent today driving around with the classifieds, checking out houses and how much their asking prices are. We then spent some time this evening with some home-buying calculators. One calculator noted that our debt ratio was on the high side. We have loan payments of $925 a month (two student loans and a car payment), and our combined yearly salaries are about $70K. Paying off just one of these debts would mean qualifying (according to this calculator) for a $40K larger loan amount. We are in Southern California, so that would put us in a much safer neighborhood. At the rate we are saving right now, we will only have a 10% downpayment in a year, but that is also the amount we have left on the car or one student loan. So, where should the money go?

Thanks for the Foolish education!
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