Balancing Credit Goals - Please advise

[Anonymous]

You need to plan your mortgage app to when that last derog comes off. Simple as that.

So you have more than enough time for a 12 month clean run, actually a little extra time, but you still don't really wanna add anything unless you need it and then not much. Having more than 12 months clean is even better.

[Anonymous]

So you're saying that I could put off my mortgage for a year. Actually that makes sense. I need time to get my income up. If I can show a really good income for 2020, then I would be better prepared fo a mortgage application, say in the spring or summer of 2021.

Actually, I am really uncertain about buying a home. My situation is that I'm spending six months in Florida and 6 months in Tennessee. So buying a home to live in in Tennessee doesn't help me in Florida. Now, if I could buy a duplex in Florida as an investment property, I would have somewhere to live here during the cold months. Then I'd like to buy a cabin in Tennessee for the Summers. This would be ideal for me really. It's not something I can do overnight.

With that plan, I could focus on building my business credit and growing my business during the next six months. And I could take advantage of my improve credit and get me a late model vehicle. Right now I am driving a 30 year old van. I need to improve my quality of life.

[Anonymous]

So 6 months to focus on my business, and then 12 months of gardening to get ready for and mortgage.

[Anonymous]

Patience my friend, Rome wasn't built in a night.

Sometimes we have to do what we NEED to so that later we can do what we WANT to.

If that van is serving you well, leave it until the bigger priorities are resolved.

[Anonymous]

Well, I am living in it.

[Anonymous]

But, if you insist, hurry up and do it, so you have the 12+ month run clean. But, remember, a car payment will negatively reflect on DTI for the house. Another good reason to put it off.

But if you do, Dec. 31 will be the day with the best deals. Go read the info in the auto forum, so you know the ropes and don't get a zillion inquiries.

[Anonymous]

Rent is $700 minimum in this area. Just now making $2000+ per month. And I invested $2800 in credit repair. (Did it myself,) $1050 to pay off two old credit cards. $1750 for secure loans and credit cards. Apparently it worked.

[Anonymous]

Well, are you going to get another van? You gotta live somewhere until the mortgage. Just remember a high payment is gonna increase DTI and lenders are therefore gonna wanna see higher income.

If you did it afterwards, not an issue.

[Anonymous]

I have been thinking about getting a vehicle that I can use to make money with. I am not talking about Uber. I am running to several people who make money doing deliveries. It would be something that I could do during the day when I'm not doing something else. I would just need the enough to cover the vehicle. This is my idea to have a vehicle pay for itself. With just a few hours a week, it would not detract for my other business activities.

[Anonymous]

What area of FL, if I may ask, I'm in FLA. Well, a car payment or rent is gonna significantly eat into your budget,

I think lenders like around 35%DTI, but don't quote me on that. A car payment would limit your mortgage payment and borrowing amount, I believe.