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Regular Contributor
Beasley12
Posts: 135
Registered: ‎06-04-2012

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
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Moderator
Revelate
Posts: 6,882
Registered: ‎12-30-2011

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

[ Edited ]

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 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
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Moderator
pizzadude
Posts: 8,241
Registered: ‎01-28-2010

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.

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