I have 12k in students loans (all of which isnt required to start making payments until Q4 2021) owed to non-government lenders, and have roughly a 1.5k credit balance currently, with 3 lines of credit. 2 being credit cards, with a combined cap of 4k. Ive had these cards for 2 years with a perfect record, making payments on both EVERY month. My credit score is 670. I have a better-than-average income, and am looking to buy a house soon. However, I would like the most favorable loan arrangement possible, so I need to increase my score.
My current plan of action is to wait until I have the capital to purchase a home, and pay off my loans all at once. My question is, is this the most optimal strategy? If not, what would be?
Also note: My time horizon would be anywhere from 6 months to 2 years to be ready to purchase a home. Ideally I would be looking for a duplex, to be able to rent, and the price range would be 400-800k. I currently have no AUM. Im 21 years old. College dropout.