Car buying question - should I lease or finance a car If I am planning to buy a house in 3-4 months? Most websites are saying no but seems like it runs counter to my thinking that credit will increase if you pay off your monthly installments on time.

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Definitely do not take on any new debt or monthly payment commitments. This will reduce your attractiveness to a lender, and the 4 on-time payments won’t help your credit. Best thing you can do now is pay down credit card balances as much as possible and show a very low debt load.

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Can you wait until after you buy your house?

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No...

3-4 months is not long enough in terms or payment history.
You’ll probably end up paying a slightly higher interest rate on your home.
Definitely smart to go the other way around

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Have you gotten any mortgage pre-approvals? That’d give you a good idea on your rate. Most lenders allow you to lock a rate in for a certain amount of time (2-3 months).
Then you can go shop for a car.

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Best strategy is to have as clean a credit record as possible going into home purchase - which means having no hard credit inquiries on your credit report in the months prior (optimally two years prior)

My spouse and I took this clean credit record strategy a step further by paying off all credit cards before their statement dates for about 4 months prior to applying for home mortgage. This meant that all credit cards reported a zero balance to the credit agencies. We had already paid off all other debt except for our existing mortgage long ago. When we applied for the mortgage, our lender said our credit score was ridiculous and we had one of the cleanest credit reports they had ever seen. Needless to say, we got a fantastic rate that we timed around some jobs report which caused a momentary blip down in interest rates. Been riding fat and happy ever since.

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It also depends on your income, available cash, credit score. If you have a good income and a large bank, you can do both. Right now the banks are flooded with cash, interest rate is low and house prices are relatively flat. Perfect time to do both if you can👍

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It might be cheaper in the long run to rent a car for a couple of months until you, depending on your credit situation. A half point on a house adds up.

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No

No way. After house!

It’s incremental unless you hit specific debt to income ratios

Your credit score will not improve after 3-4 months of timely payments on a loan. Do the house first.

Your credit will be impacted by: hard credit inquiry, new credit account, overall length of credit history. Those will out-way 2-4 months of timely payments.

Thank you all... seems like financing is not an option.. what about leasing?

Your credit will still be impacted; DOES NOT make sense unless your current car is wrecked

After house. Your credit score might bump, but your interest rate is also based on liability to income ratio. It will show that you are taking on a lot of debt in a short time.

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