I want to be approved for mortgage in 2 years. I have no loans, but high credit score & never missed a payment. Will taking a $1-2k home improvement loan today help me get a better interest rate on a mortgage in 2 years?
I'm looking to be purchasing a house in 2 years, and as a 24 year old, i don't have any loan history. Never financed a car, never had any school loans. I've had a credit card since I was 18 and never missed a payment. But I think the largest purchase I ever made on credit was $700 and I payed it off that month. We have been renting for the past 2 years and I have always had my utilities paid by my credit card.
I'm curious if I actually don't have enough "loan history" to be approved at a decent interest rate for a mortgage int he next 2 years.
I'm planning on buying a new sectional and a TV and I'm not interested in financing through the stores, but I would be interested in getting a loan from the bank to pay that off and get a successful loan paid off under my belt before I go and apply for a mortgage.
Would taking out a $1-2k home improvement loan to pay for couch and tv be a good option for me? I can absolutely buy both outright right now, but I'm trying to use this as an opportunity.
Addition questions then. I can pay it off the very next day, but I know that isn't worth it. How early should I pay it off vs how long of a term should I initially ask for?
edit: I already have enough for a downpayment, waiting 2 years to see if we like the ares we are renting enough to buy. have 1 credit card opened with my bank at 18 & a Kohl's card.
Posted Jun 4, 2019, 3:19 PM UTC · edited