Trading in my car question 6-8 months before buying a house

[Steveomatic]

I have a question I need help with. I want to trade in my car. It is new, I have had it only a year but it is too small and Ishould not have bought one so small. I can trade it in and get a fair trade offer on it. The new car I will be purchasing will not raise my monthly payment so my debt to income ratio will not change. I am planning on purchasing a new home in 6-8 months (Conventional loan). My scores are currently 719, 718 & 750. I have no late payents or collections of any sort. Is it safe to make this trade without worrying about my home purchase 6-8 months from now? How much will I lose in points for the hard hit and how much for paying off my current car and starting a new lioan? Will the points come back in 6-8 months. I also plan on paying down two Credit Cards to get my ratio on those cards under 15%. They are currently under 30%. 

Thnaks,

Steve

[takeshi74]

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@Steveomatic wrote:

Is it safe to make this trade without worrying about my home purchase 6-8 months from now? How much will I lose in points for the hard hit and how much for paying off my current car and starting a new lioan? Will the points come back in 6-8 months.

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All we can give you is the general advice of no new credit 6 months to 1 year prior to a mortgage.  The specifics all depend on your credit and your mortgage lender (underwriting criteria is not identical for all creditors).  It may be a safe, it may not -- we can't say for certain.  We also can't tell you that a new auto loan will cost you X points.  It's not just the hard pull that matters but the change to your AAoA and possibly any change to your DTI as well.  Any change to score depends on not only the change itself but the person's existing credit.  Further, the score that will matter will be the score that your mortgage lender pulls which is likely to be an entirely different model than what myFICO provides.  myFICO's scores are based on the 08 model.  Many mortgage lenders rely on the 04 model.  You'd really be best off discussing this with your mortgage lender.