will it hurt my chances of getting a mortgage if I purchase a car that reduces the amount I currently pay for a monthly car payment.?

Asked by Salz51, 01960 Sat Jul 28, 2012

I already have a car payment and would like to purchase something that will cost me less each month. Will this hurt my chances of getting approved.

Help the community by answering this question:

+ web reference
Web reference:

Answers

9
Territory.c…, Agent, MA,
Tue Jul 31, 2012
Depends on your score and other debt. The best person to consult is your mortgage lender or broker.

Good luck!

Territory.com
Massachusetts Premier Buyer Brokerage
Web Reference:  http://territory.com/
0 votes
Paul Stonkus, Agent, Lynn, MA
Sat Jul 28, 2012
Unless there has been a change lately, if you have ten months or less left on your payment for the present car, they won't use that debt in your ratio. Meet with a mortgage person to get up to date criteria, or contact me and we can work on this situation together.
Paul
0 votes
, ,
Sat Jul 28, 2012
Depends on how fragile your score is and how much time you have left on your current payment. Talk with a local professional and run the scenario by them. Liabilities are just one of the many factors to consider when purchasing a home.
0 votes
Betsy Woods, Agent, Beverly, MA
Sat Jul 28, 2012
I would talk to a Mortgage broker first. They will best be able to explain how the new purchase will impact your credit. It is usually advisable not to purchase anything on credit prior to closing on a home!
0 votes
, ,
Sat Jul 28, 2012
Good afternoon Salz51,

Meet with a Local Mortgage Banker to get prequalified for mortgage financing. The Mortgage Banker will review all facets of your loan request to answer your questions with regards to the types of loans and maximum loan amounts you could qualify for. Your Mortgage Banker can best answer this question during your Prequalification interview.

There's no single answer to your question because everyone's Income/Credit profile is different from the next person's.

Trevor Curran
NMLS #40140
0 votes
Christine Mo…, Agent, Wilbraham, MA
Sat Jul 28, 2012
Buy the house first. It is easier to get a car loan than a home loan. If you have really good credit than it won't make too muchdifference.
0 votes
Richard Shap…, , Framingham, MA
Sat Jul 28, 2012
Should be ok. If your credit is borderline then the inquiry could bring down your score.
0 votes
Jennifer Eri…, Agent, Wilmington, MA
Sat Jul 28, 2012
If you are getting something that is less than what you are paying now it should be a benefit from the income to debt ratio standpoint. You may have to do an explanation letter regarding the credit inquiry but the fact that you are lowering your debt should be a positive. You should speak with a lender though to go through the numbers and advise you on the best way to structure the home purchase. If you need someone to speak with, let me know and I will send you some lending contacts.
0 votes
If you could send me the lending contacts I would very much appreciate it!
Flag Sat Jul 28, 2012
Ron Thomas, Agent, Fresno, CA
Sat Jul 28, 2012
If you have a lot of CASH sitting around; Okay!

But if you increase your Income to Debt ratio; yes, you will hurt yourself.
We tell Clients to not buy anything on time until after Closing.
We also want you to cut back on Pizzas and eating out, and put every penny you can into Savings.
Do you want the house, or not?
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more