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Do I qualify for an auto loan?

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guykara
Frequent Contributor

Do I qualify for an auto loan?

Credit Score: My FICO scores as of 1/27/2015 as per equifax.com - 683

AAoA: 3 Years, 2 Months

# of positive trade lines: 7

# of negative trade lines: 2 (Chargeoffs from 2008, both PIF) - 1 Judgement that only shows on TU / EX. I could dispute this to get them removed because it was a person who sued my LLC around 6 years ago so it shouldn't show on my credit report. When I had it removed from equifax, it initially tanked my score like 40 points, but I earned it back quickly, so not sure if I should really touch it yet. I'm thinking I'll go with DCU since it seems to be a favorite here, and they go with equifax.

Income: $~8500/month 

Lenght of Employment: 1 Year 2 months (around 6 years in this industry)

Previous Loan Experience: PIF auto loan from Oct 2012, no lates. Currently have an auto loan that had a balance of $22k, currently at around $8k. No lates.

Debt-to-Income (DTI): After I get my mortgage in a few weeks, I'll be at about 35%.

Year of Car: 2015 Jeep Grand Cherokee

Miles: New Car

Purchase/Refinance: Purchase

Requested loan term (XX Months): 60 or 72

Down payment amount: Trade in - Hoping to get around $5k

Co-borrower/Co-Signer: No 

Other: Aiming towards a purchase price of low 30's after trade in. I have 3 credit cards, two are at around 1% util, one is at about 35% util.

 

Looking to purchase after I close on the home.

 

Thank you.



Starting Scores (10/18/2013): EX: 603 | EQ: 572 | TU: 659
5/05/2014 EX: 628 | EQ: 627 | TU: 623
5/25/2014: EX: 628 | EQ: 635 | TU: 623
Current Scores: EX: 670 | EQ: 663 | TU: 681
Goal Scores: 680 across the board


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Message 1 of 7
6 REPLIES 6
SamsungHDTV
Established Contributor

Re: Do I qualify for an auto loan?

Your golden window will be right after you close on your mortgage to the time it reports to your credit reports. Your DTI wont be reflective on the reports, and this will give you a better chance of approval and if approved, at a better rate. My concern is what will be your DTI with the mortgage and auto loan payment. You're borderline.

 

Other advice, make sure you negotiate the trade-in first (separately) from the purchase of the jeep. Otherwise, they will give you a better deal on the trade-in to try to make you feel like you're getting a deal, when you're going to get ripped off on the purchase. Consider selling private party.

 

Wasn't clear about if the $8K loan is on the vehicle you plan to trade in.

 

I'm sure you already know, do not apply for anything until you have closed on your mortgage.

Message 2 of 7
guykara
Frequent Contributor

Re: Do I qualify for an auto loan?

Thanks for the reply.

 

Are you thinking I shouldn't tell them about the mortgage when I apply?

 

The 8k is reflective of the car I want to trade in. Currently valued on KBB at 11.5k (2012 Nissan Sentra SL - leather interior, heated seats, etc.). Thinking this will be closer to 6k once I'm ready to buy.

 

Also, I'm not sure if it matters, but I do live with my fiance who does help with paying bills (1099 employee making around 60k a year).



Starting Scores (10/18/2013): EX: 603 | EQ: 572 | TU: 659
5/05/2014 EX: 628 | EQ: 627 | TU: 623
5/25/2014: EX: 628 | EQ: 635 | TU: 623
Current Scores: EX: 670 | EQ: 663 | TU: 681
Goal Scores: 680 across the board


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Message 3 of 7
SamsungHDTV
Established Contributor

Re: Do I qualify for an auto loan?


@guykara wrote:

Thanks for the reply.

 

Are you thinking I shouldn't tell them about the mortgage when I apply?

 

The 8k is reflective of the car I want to trade in. Currently valued on KBB at 11.5k (2012 Nissan Sentra SL - leather interior, heated seats, etc.). Thinking this will be closer to 6k once I'm ready to buy.

 

Also, I'm not sure if it matters, but I do live with my fiance who does help with paying bills (1099 employee making around 60k a year).


I mean I wouldn't if I were you and you know you can afford the payments. Higher DTI can sometimes means higher interest rate.

If you plan to trade in your cars often, look into leasing.

 

Only matters if you plan to have your fiance be a joint applicant.

Message 4 of 7
guykara
Frequent Contributor

Re: Do I qualify for an auto loan?

Thanks for the response. I've had my car for almost 4 years - I don't want something new every 3 years so I'll probably stick with a purchase for this vehicle. I'll look into DCU in a month or so right after I close.

 

Thanks again!



Starting Scores (10/18/2013): EX: 603 | EQ: 572 | TU: 659
5/05/2014 EX: 628 | EQ: 627 | TU: 623
5/25/2014: EX: 628 | EQ: 635 | TU: 623
Current Scores: EX: 670 | EQ: 663 | TU: 681
Goal Scores: 680 across the board


Take the myFICO Fitness Challenge
Message 5 of 7
SamsungHDTV
Established Contributor

Re: Do I qualify for an auto loan?

You shouldn't wait a month after you close if you don't want your mortgage to be reflective of your DTI when you apply.

 

Up to you.

Message 6 of 7
guykara
Frequent Contributor

Re: Do I qualify for an auto loan?

Oh, sorry for the confusion. I actually close in around 5-6 weeks and will look at obtaining the new car directly after.

 

Thank you!



Starting Scores (10/18/2013): EX: 603 | EQ: 572 | TU: 659
5/05/2014 EX: 628 | EQ: 627 | TU: 623
5/25/2014: EX: 628 | EQ: 635 | TU: 623
Current Scores: EX: 670 | EQ: 663 | TU: 681
Goal Scores: 680 across the board


Take the myFICO Fitness Challenge
Message 7 of 7
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