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hpiepe01

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Should I get an auto loan before a mortgage?
I am interested in buying a house as soon as possible so that I can stop renting. I have been working on building/rebuilding my credit for about a year now. I have a short credit history. The average is 1.89 years. My current score with credit karma is 639 and on my last approved credit card app I believe it was around 645. All my current accounts are in good standing, which include: 20,000 in student loans, and 6 credit cards with utilization under 20%. I do have 4 derogatory marks from when I was 18 and 19 (currently 24 and hoping they fall off soon). One is a charge off from cap 1 and the other is an old hospital bill... I'm not sure what the other two are. Anyway, I want to both purchase a house and a new car. I feel I'm not quite ready for a mortgage for at least another 6 months to a year, but need/want a new car now. Also, I think I have a better chance of being approved for an auto loan and hope having that new account in good standing for a few months will help raise my score before applying for a mortgage (I would rather pay higher interest on a smaller loan for a few years than a large mortgage for 30 years). The main thing that worries me is that the loan will raise my debt to income ratio. So, my question is...Would it benefit me to go ahead and get the auto loan now, or try for a mortgage first and wait on the car?

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buy a used car 08 or 09 to save money and still get good condition.....doing that and holding off for 1 year will knock off the drop you will take from the auto loan and boost your score should you make every payment on time for the next 12 months......now concerning debt to income ration lets say you make $36,000 per year puts your take home pay at $3000 that means you don't want your monthly bills to be over $900--30% of take home pay....since you will be adding a new car payment which tacks on $300/ month bringing you to 40% which is the max your debt to income ratio can be to get a mortgage and the max house you can afford is ($180,000 5x yearly salary) 

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