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Auto loan after home loan....how soon?

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Regular Contributor

Auto loan after home loan....how soon?

I am in the process of cleaning up my credit to apply for a home loan in or around January 2013. I am saving money for that and for a new car loan down payment. My question is, how soon should I apply for the car loan after I close on the house? I am thinking I should apply pretty quickly before the house hits my credit but I don't know how all of that works. I plan to use Capital one auto finance.
EQ FICO 564 (3/12) Lender pull 673 (4/12) FICO 703 (6/13)
TU FICO 605 (6/12) to FICO 687 (3/13) Lender pull 680 (4/13)
EXP FICO lender pull (4/13) 651
Homeowner since September 2013!
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Moderator

Re: Auto loan after home loan....how soon?

After you close you're pretty much free to do what you want, just it'll vary a bit based on whether that new mortgage tradeline is on your report or not and that could go either way with your individual credit profile.

 

Personally I wouldn't put two big ticket purchases that close together unless I had no choice; certainly if they knew about it, your mortgage lender would be pretty annoyed to see the money you claimed as a reserve vaporize with a car downpayment.  My non-credit, financial defensibility recommendation: don't blow your excess cash on a new car after just buying a house.  There's almost always going to be an unbudgeted expense or two, and it's better not to get caught flat-footed.

 

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


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Super Contributor

Re: Auto loan after home loan....how soon?

 

Also be aware that your new mortgage won't appear on your CRs immediately, it could be 2 or 3 months, depending the creditor.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
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