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$23k Auto Loan Approval Odds w/out co-signer

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Anonymous
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$23k Auto Loan Approval Odds w/out co-signer

Hi There, 

 

I'm due for my and my husband's first child at the end of June. We are in need of a nice reliable, AWD vehicle. We recently sold my 2007 Ford Fusion and I have $2200 cash to put down on a vehicle. I'm looking at a 2014 GMC Acadia with 38k miles priced at $23577. We're hoping we can get them off their price by at least $1000 down to $22500, plus the $2200 down on top of that. 

 

My credit scores are currently all in the high 700s (about 780). No missed payments, no collections and only 4% card utilization rate. The only catch is that we purchased a home about a year ago and I'm worried about my DTI. I'd like to finance under my name without my husband cosigning as he is self-employed and sometimes that complicates the application process. Here are my DTI figures. 

 

Monthly income - $4,237

Mortgage - $1687 per month ($843 if they consider we split this payment equally between us)

Student Loans - $447 per month

Credit Cards - $50 per month

Total monthly commitment with full mortgage - $2184 which puts my DTI in the 50% range

Total monthly commitment with mortgage split in half - $1340 which puts my DTI at 32% - 39% with the anticipated car payment. 

Our mortgage payment is autodrafted from a joint account that we both contribute equally to each month. Would proof of this be enough to justify cutting the mortgage payment in half to increase my approval odds should I apply myself?

 

 

 

5 REPLIES 5
Anonymous
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Re: $23k Auto Loan Approval Odds w/out co-signer

OP,

How are your husband's scores? Even though he is self-employed, with your scores and assuming his aren't horrible, banks aren't very likely to ask for income. As far as splitting your mortgage payment I highly doubt that will work because on your credit bureau it will show the full payment amount and thats how they will factor in your DTI.

 

I would think with your credit that you should be fine applying for joint credit with your husband and having no issue's getting an approval without income verification.

Message 2 of 6
Anonymous
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Re: $23k Auto Loan Approval Odds w/out co-signer

If he has a good score most of them time for a auto loan they will go off stated income
Message 3 of 6
Anonymous
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Re: $23k Auto Loan Approval Odds w/out co-signer

I don't think you will have a problem.  You have great scores which overcomes the concerns your discussing here.  I would get a preapproval with a credit union like Penfed for a great rate and easy process.

Message 4 of 6
Anonymous
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Re: $23k Auto Loan Approval Odds w/out co-signer

Thank you for the replies everyone! I ended up going to talk to a lender and they did cut the mortgage responsibility in half. I ended up with the vehicle at a 2.87% interest rate, which is the absolute lowest I've seen around here for a used vehicle, so I got a great rate! 

Just to answer some previously unanswered questions - my husband's scores are also fantastic. He has actually helped me a lot to get my credit up to where it is now. I made some not-so-wise credit decisions in college and now, finally, at 30 years old I have the vehicle I want for the price I want and I couldn't be happier. Not only is it kind of a headache applying for credit with him due to the self-employment, but we wanted to leave credit available for him to be able to buy another vehicle in the next few months. He currently only has a large cargo van and he'll need something he can put a carseat in for when I head back to work after maternity leave.

Thank you so much for the responses!  

Message 5 of 6
Anonymous
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Re: $23k Auto Loan Approval Odds w/out co-signer


@Anonymous wrote:

Thank you for the replies everyone! I ended up going to talk to a lender and they did cut the mortgage responsibility in half. I ended up with the vehicle at a 2.87% interest rate, which is the absolute lowest I've seen around here for a used vehicle, so I got a great rate! 

Just to answer some previously unanswered questions - my husband's scores are also fantastic. He has actually helped me a lot to get my credit up to where it is now. I made some not-so-wise credit decisions in college and now, finally, at 30 years old I have the vehicle I want for the price I want and I couldn't be happier. Not only is it kind of a headache applying for credit with him due to the self-employment, but we wanted to leave credit available for him to be able to buy another vehicle in the next few months. He currently only has a large cargo van and he'll need something he can put a carseat in for when I head back to work after maternity leave.

Thank you so much for the responses!  


Congratulations, very happy for you.  Thanks for coming back and posting your results and additional details.  Many post, get advice and never followup.  The community is all about sharing so we can all learn.  That is a fantastic APR for any car much less a used car so you did great.  

Message 6 of 6
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