This is all super helpful–thanks for all of the responses.
DTI shouldn’t be an issue as my income is relatively high. But will the “debt” from this 2-year lease be the $20,000 in total payments, or will it be the $110,000 MSRP of the car?
I was also worried about the hard pull because I’m thinking of getting a credit card, which will require another hard pull. It sounds like I should avoid the credit card if I’m considering the mortgage.
Hard pull can really hurt your credit score for a few months, may result in the next tier rate?
To your first question, $20k; but bank doesn’t look at this number, they look at the monthly payment
If by “really hurt” you mean a 2-4 point drop for ~3 months, then yea.
Again this all goes back to understanding your current credit situation and what you will need to get the mortgage.
It would be just the lease amount and it would show as fully paid if you do One Pay and won’t affect your DTI.
Hard pulls have a small hit of 4-5 points and it will recover after a few months, it’s not a big deal unless you are on the cusp of getting the best tier. If your credit is that weak, I would lay off everything.
Mortgages also go off of the lowest score. So if there is another person on your loan, your rate will be based off the lower score of the two.
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