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Regular Contributor
Posts: 236
Registered: ‎12-09-2011
0

Car loan 6 months prior to escrow

Hi there,

I have an employment opportunity coming up that requires me to do more driving and we are a 1 car family, we have a lease up in 6 months, along with a new construction home that should be ready by December. I am looking to purchase a car at just under $10k. I'm not sure what our DTI ratios are (I need to check with our loan lady) but is this a shot in the foot to our whole operation here, not sure what to do.

Thanks!


Starting Score: TU 660 EQ 623 EX 644
Current Score: TU 670 EQ 683 EX ???
Goal Score: 700 on all 3

Freedom: $3k, CSP: $5k, Chase Disney Premier: $5k, AmEx Zync: NPSL, Cap1 NH: $750, Cap1 Plat: $750, USC CU: $500
Regular Contributor
Posts: 142
Registered: ‎06-05-2013
0

Re: Car loan 6 months prior to escrow

Do you plan on acquiring 2-vechiles once the lease is up?

 

If not, a $10,000 purchase (financed) should not affect your DTI for a home purchase; assuming the "new" payments are less than the lease payments.

 

If you plan on financing/leasing 2-vehicles in Dec, then your DTI will decrease and may reduce your mortgage loan amount, and may also affect your interest rate due to the credit inquiries.  However, you can offset the morgage loan decrease with down downpayment.

Regular Contributor
Posts: 236
Registered: ‎12-09-2011
0

Re: Car loan 6 months prior to escrow

We wouldn't purchase/lease a car after the one that's coming up is due until we are clear of escrow. If need be we will rent a car until we are through escrow and everything is signed and dotted,


Starting Score: TU 660 EQ 623 EX 644
Current Score: TU 670 EQ 683 EX ???
Goal Score: 700 on all 3

Freedom: $3k, CSP: $5k, Chase Disney Premier: $5k, AmEx Zync: NPSL, Cap1 NH: $750, Cap1 Plat: $750, USC CU: $500
Regular Contributor
Posts: 142
Registered: ‎06-05-2013
0

Re: Car loan 6 months prior to escrow

If the lease expires after your settlement date, you won't have anything to worry about.

 

But it sounds like you already have a plan in place if the lease expires before the settlement date.  

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