I'm probably over thinking this, but it really has me worried. We need / want to buy a new Honda Pilot this summer.
I have no baddies in a 22 year credit history and a TU score of 690. Perfect employment since I was 21 (I'm now 43). 2 car loans still showing on my reports (1 Cap1 PIF and another Toyota 2 months from PIF). Wife only works part time so she only contributes about $1,450 of our $9,,000 combined monthly gross income but her part time employment dates back 10 + years. She has a FAKO TU score around 720, go figure.
Anyway, the issue that has me worried is my (our) DTI and revolving credit utilization. Had some things go on a few years back medically and educationally that worked its way onto credit cards, so we've been on the treadmill ever since. That unfortunate circumstance puts us at about 44% DTI and 71% utilization.. We are chipping away, but it is slow.
I spoke to a LO at my credit union, but she kept things very general since I wasn't actually applying. Basically, I'm looking at 5.24% on a 72 month or 4.49% on a 60 month in the "B" Tier (A is 710 or above). However, she then went into a long spiel about all the other factors, such as time on job, money down, LTV, and of course the terrifying DTI and UTILIZATION. She really seemed to talk a lot about Utilization. She never would go into percentages though -- only that one bad area might be offset by another good area i.e. High DTI vs High Income or time on job.
They do their LTV's against full retail, so with my anticipated negotiations + down payment of $3,500, I'm thinking I'll end up at about 83% LTV.
When dealing with a bank or Credit Union, does it benefit me to sit face to face with another human while applying? Or is everything so technology based now, that it does not matter?. I'm eager to sit with a CU officer and remind them, if necessary, that I've been with them umpteen years and have paid off 2 auto loans and 2 home equity loans with them. Plus, 100% of our payroll is deposited with them.
Obviously, my desire is to shop like a cash buyer with financing in hand. If the dealer can beat the CU rate and terms, then that's all the better.
Opinions sought and greatly appreciated.
. I had to buy a prostetic leg once with my own money...almost 40k! I dont have a credit union now, but i didnfor a number of years and they were always able to manually get things done that would not have been possible otherwise. Good luck with it