Home Buying in Plainview>Question Details

Sandra Porter, Renter in Freeport, NY

Can I take on a new car while house shopping?

Asked by Sandra Porter, Freeport, NY Wed Mar 6, 2013

How does it affect me if I buy a new car? I already got a pre-approval and the bank already run my credit. Will this. Affect me?

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13
Javier Meneses’ answer
BEST ANSWER
Sandra, even though your lender already looked at your credit and issue a pre-approval, it doesn't mean your new auto loan is going to fly under the radar. First, the credit that was initially pulled is good for 90 days, so of for whatever reason you don't find a house, go into contract, submit a mortgage application along with all necessary documents AND close by the time 90 days are up, THEY WILL PULL ANOTHER CREDIT REPORT. Even if you do close within the 90 days, most lenders will run a comparison report which serves the sole purpose of seeing if you took on any new debt.

We don't know the details of your financial situation. Generally taking on a new auto loan can have a negative affect on your chances of getting a mortgage. But it's very possible that you don't have much or any liabilities and you can indeed take on modest auto loan. This is something you should speak to your loan officer about. Your Loan Officer can run the numbers and instantly know how much auto loan you can take on, if any, and still qualify for your mortgage.

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648
3 votes Thank Flag Link Wed Mar 6, 2013
What? Did this just turn into a dating site? Lol
0 votes Thank Flag Link Sun Mar 17, 2013
I wouldn't recommend taking on any new debt if you are serious about purchasing a home. Discuss this with your lender to see where your debt to income ratios fall before even considering buying a new car prior to purchasing your home.
0 votes Thank Flag Link Thu Mar 7, 2013
Hi, Yes this will affect you. I always tell my clients to wait until they close to make big purchases.
0 votes Thank Flag Link Thu Mar 7, 2013
Hi Sandra! In my professional opinion and experience, a potential home buyer should not take on more debt when seriously looking to buy a home. Taking on car payments will higher your debt to income ratio, which can ruin your chances of being able to obtain a mortgage. You should speak with a mortgage advisor who could see how much you can afford should you get the car, and should you just opt for the house instead.

I hope this answered your question! If you have any further questions, please feel free to contact me by the ways below.


Wishing you all the best,

De Vonte Williamson , LSA
Proudly Serving Long Island
Coldwell Banker Residential
(631)384-3695
http://cbmoves.com/DeVonte.Williamson
http://devontesellsny.wordpress.com/
DeVonte.Williamson@cbmoves.com
"I Stand Behind Getting You Results!
0 votes Thank Flag Link Thu Mar 7, 2013
Basically Sandra, you will acquire additional debt that the lender did not factor in originally and that new debt may either disqualify you from mortgage eligibility or reduce the amount that you can be pre approved for so as everyone mentioned below, don't do it.

Janet Nation, CBR
Sailing Home Realty
Direct: 646-321-9649
Office: 516-377-4760
Licensed Real Estate Salesperson
http://www.jnationproperties.com
0 votes Thank Flag Link Wed Mar 6, 2013
NO. NO. NO.

Do not buy ANYTHING until after you close. NOTHING except food, gas, and housing.
0 votes Thank Flag Link Wed Mar 6, 2013
I have a do not do list during the home buying process for my buyers. You should not do anything that might affect your credit or your debt. Adding a car loan, furniture payments, or any other purchase can decrease what you are able to buy and if your looking to close soon and this has changed your ratio, you will not get your mortgage commitment. Just hold out until you find your home and you'll be all set. Good luck!
0 votes Thank Flag Link Wed Mar 6, 2013
Consider making the purchase after closing; however consult with your loan officer, he/she can better advise....
0 votes Thank Flag Link Wed Mar 6, 2013
Don't do it until after you have the keys to your new home -

Kevin McLaughlin, Broker Owner
Berkshire West Realty

http://www.BerkshireWestRealty.com
info@BWestRealty.com
DRE Broker #01405309
0 votes Thank Flag Link Wed Mar 6, 2013
Ouch! Never good to ask the question AFTER you've made the move. This one could cost you the house. Now, if you have very strong credit, it might not be a problem. Best of luck...
0 votes Thank Flag Link Wed Mar 6, 2013
Do not make any large purchases until you CLOSE on your house!!!!!
0 votes Thank Flag Link Wed Mar 6, 2013
You are running your Credit, which will lower your Score,
and you are taking on DEBT, which will significantly raise your DTI ratio.
A very big No-No!

Don't do anything until you have closed Escrow!
0 votes Thank Flag Link Wed Mar 6, 2013
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