Home Buying in Las Cruces>Question Details

hellogenesisp, Home Buyer in Las Cruces, NM

Im 23 years old and have an average credit score. I recently bought a car. Will that affect or hinder the process of buying a home?

Asked by hellogenesisp, Las Cruces, NM Sun Dec 15, 2013

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Your Lender of Choice will calculate your debt to income ratio. Yes, that could affect you prequalifying for a mortgage. Please consult with your Lender. Getting prequalified with a Lender does not mean you are buying a house today! But your Lender will be able to answer these kind of questions for you! Encourage calling a local Lender!
0 votes Thank Flag Link Mon Dec 16, 2013
Newly opened accounts will generally drop your score in the short term, until you establish a payment history of at least 6-12 months on that account.

As far as hindering the process of buying a home, so long as your credit scores are still acceptable, it only hinders you to the extent that the lender must how consider the car payment and its impact on your income. For example, if your car payment is $400/month, that is $400 per month less that you can spend on a mortgage payment.

Feel free to give me a call and I can lay out your mortgage options for you, such as rates, programs you qualify for, and how much.

Tony

Tony Grech | Mortgage Loan Originator | NMLS 977416
PMAC Lending Services, Inc.
Toll-free (855) 642-4762 | Fax (248) 945-4842 | Direct (248) 728-0078
tony.grech@pmac.com
0 votes Thank Flag Link Mon Dec 16, 2013
Give Bob Harrington of Credit Repair of New Mexico a call. He should be able to answer most of your questions. Phone: (575)621-2286 or email him at bharringtonlc@gmail.com
0 votes Thank Flag Link Mon Dec 16, 2013
It will hender your credit score, unless you traded in a car and did not add a lot of debt. If you went from no car note or debt to having 25k in debt then your credit score will decrease since the total amounts owed makes up 30% of your credit scores. Hopefully you did not take too big of a hit on your scores so getting approved is still possible. I wouldn't worry though I know lenders that can still work with lower scores even if they did drop.
0 votes Thank Flag Link Sun Dec 15, 2013
It depends on what your score was prior to buying the car. If the credit is above 620, your biggest obstacle is the debt-to-income ratio that the purchase will place you at. Connect with a local lender who can look into all of your options.

Leigh-Jo
Syan Real Estate
Call/Text: (505) 730-8181
FREE Listing Alerts: http://www.syan.com/alerts
Web Reference: http://www.syan.com
0 votes Thank Flag Link Sun Dec 15, 2013
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