Hi, we decided to postpone our home purchase until the beginning of the year because while we were already pre-approved we were having a tough time finding something that we like enough to submit an offer for and in the meantime I also desperately needed to buy a new (used) car. So I figured I would buy the car and establish a new credit card and let both of those age for 6 months before getting a pre-approval again. However the impact of the inquiries and the car appear to be less than I expected, and since we are going with an FHA loan and our middle score is still sufficiently over the FHA minimum, I'm wondering if there's any need to wait? In your opinions would recent purchases/tradelines be enough for an outright denial on an FHA loan if there's virtually no impact to our DTI ratio? I know conventional wisdom would say buy the house and then the car and credit cards should follow, but I've needed to replace my car for about a year now and I'd been holding off in anticipation of buying a house back in January so I couldn't delay it much longer without prospects in sight. Thanks very much for your help!!!
The conventional wisdom is so you don't mess up your DTI, or having a new trade line drop your Fico so you get a worse rate.
But if your DTI is in check and your credit is way above the limits then you should have no problems. Go enjoy your new home.
Thanks! I'm relieved that I went ahead and purchased the car in that case. We'll just have to continue to watch the market. Thanks again!