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Alot of good information above - I'll add a bit more.
Fixed payment accounts, like a car loan, or a mortgage are not as heavily weighted as revolving accounts like credit cards. Fixed payment items are considered more of a burden. Those fixed payments are added up to calculate your debt to income ratio which is also important when calculating your mortgage.
If you really want to improve your FICO in a short period of time, you should run up some credit cards and pay them off regularly. You can do this without paying any interest by paying off in full each month. In a short time, your limits will be increased and your FICO will shoot up.
For a mortgage, like others have said, you need at least a score of 720, 20% down, a debt to income of no more than 41% and a mortgage payment of no more than 31% of your after tax income. Your regular bills like the gas, phone, power are not included as "debt".
I won't criticize you for a $40k car. I enjoy nice cars too and have 2 in that price range. But your "toys", like cars. boats, RV's, gadgets, etc, should not be more than 50% of one year's income. I'd recommend that level only if your other savings goals are being met - like funding your retirement, saving for your house downpayment, etc.
Good luck!
Fixed payment accounts, like a car loan, or a mortgage are not as heavily weighted as revolving accounts like credit cards. Fixed payment items are considered more of a burden. Those fixed payments are added up to calculate your debt to income ratio which is also important when calculating your mortgage.
If you really want to improve your FICO in a short period of time, you should run up some credit cards and pay them off regularly. You can do this without paying any interest by paying off in full each month. In a short time, your limits will be increased and your FICO will shoot up.
For a mortgage, like others have said, you need at least a score of 720, 20% down, a debt to income of no more than 41% and a mortgage payment of no more than 31% of your after tax income. Your regular bills like the gas, phone, power are not included as "debt".
I won't criticize you for a $40k car. I enjoy nice cars too and have 2 in that price range. But your "toys", like cars. boats, RV's, gadgets, etc, should not be more than 50% of one year's income. I'd recommend that level only if your other savings goals are being met - like funding your retirement, saving for your house downpayment, etc.
Good luck!
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