Generally speaking it wouldnâ€™t really matter either way. What is most important when qualifying for a home loan is your current and historical credit profile, your debt to income ratio, and your employment history. Now with that said, if youâ€™re thinking about refinancing you car loan I'll assume its because you want to lower your payment...if this is the case it would lower your debt-to-income ratio, which in-turn could help you qualify for more of a home loan. My suggestion would be to meet with a mortgage consultant, and get a professional opinion before you do anything.
I would be more then happy to meet with you via phone, or in person to help answer your question more specifically.
I thank you in advance for the opportunity to provide you with my services.
Thank you and have a great day.
Senior Mortgage Banker
Jeffrey hit the nail on the head with his response. It will only make a difference if it changes your debt to income ration (DTI).
Let me know if you would like a great Realtor to work with. I would be more than happy to help you find your dream home for a great price.
Len McGuirk, Realtor
Prudential Americana Group ~ Las Vegas
Direct: (702) 203-6688
If you already have a car loan and you're going to use the same lending source to do the refinance, it likely will not make a hill of beans of difference. Especially if you're refinancing at a lower interest rate that can reduce your monthly payment, or refinancing at the same interest rate but for a slightly longer term, which also reduces your monthly payment.
The historical issue is not to go buy something new, like a car, before getting your financing for your home. This is because the new financing of that new car is going to increase your monthly debt ratios, which is not a good thing if you're on the edge of qualifying for a new home loan. But in your situation, you already have the debt and you're just trying to refinance it.
Your lender for the car will make a credit history inquiry, but 1 inquiry is not going to have enough of an effect on your credit score to make it something to worry about.
Obviously, if you can afford to wait to refinance, then wait. But if doing it now improves your financial situation, then do it.