Will I be ready to do it?

So I start a new job Monday. My TransUnion Fico is 683. 1 collection out on my report for $250 (cell phone I never once made a payment on). My current car note is a bit iffy, a few 30’s and 1 60, but during a time when I had been unemployed for 6 months.

Current mortgage, previous car, and all 4 credit cards are perfect greens. I owe about 7k over 3 cards ($280 a month min. payment), 413 a month on my car (2 years left) and about 1k a month on my home (28 years left). Gross income is going to be right around 4500 a month. I was recently declined for a new credit card (wanted to balance transfer everything to a lower %)

I know the only way to know is to try, but should I be able to get a 2nd mortgage?(texas) I would like to start flipping or rehabbing homes soon to help pay off the credit cards and car. (friend is a remodeler getting started). The problem I have is that I do not believe I should be making an offer on someones home, especially if they are facing foreclosure, tieing it up for 30 days, then not be able to buy it if I cannot assign the contract. It also gives me the ability to try a rehab if the right deal presents itself. Since I am looking at a 12month max holding time, I assume I should be able to get some kind of loan, even an ARM would work in a 1 year period right?

How long should I wait before getting a pre-approval letter so I can do this?

Side question on credit - I have a Discover card I have never used, I have no idea where it even came from. Open since like 98, high balance of 0, but its all green at least lol…Should I try and get this deleted, or just request a card and make a few purchases on it and pay it off?

an answer to your side question: keep the account open! it helps your score to have available revolving credit, and its been open for several years–that helps too. you may want to call and get a card to make a purchase so discover doesn’t cancel it (?), pay it off, and then get rid of the card if you want. because the account has been open for so long, ask if you can get a credit limit increase (just to show more available credit).

as for your main question: there are a lot of people on here who know more than i do in that area–especially rehabs… but in general, with that fico (which is pretty good for having lates–they must be old?), no lates on your 1st mortgage, and (i’m assuming) there’s equity, i don’t think you’ll have any problems getting a 2nd or a HELOC. your job time will hurt you, but if its the same or similar line of work, its not so bad.

Texas has a cash out rule where you cannot borrow money, cash out, over 80% of the value of your home on your primary residence. That includes home equity loans.

If the collection is older than 24 months, it has less weight than if it is within 24 months. Beware because if you pay it off, even though it will say paid on your credit report, it will say that it was last active this month, and will bring your score down.