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We are about 1 hour 45 minutes away from test driving a new car and just curious to see what everyone thinks on approval odds.
Me
Exp. FICO 8: 695
DTI: 33%
Partner
Exp. FICO 8: 693
DTI: 22%
Car price: $31,453.70
Down Payment: $10,000
Trade-In: $2,500
Approved unless DTI with loan included is ridiculously high.
That down payment almost guarantees approval, though.
One suggestion: go to Capital One Auto Navigator and sign up. It's a soft pull. Enter that car's VIN into it and see if it pulls up, then enter your down payment and trade value and see what they prequal you for.
I should add:
Me
Gross Income: 45,600
Partner
Gross Income: 42,060
Thanks! I'd be curious do you know how they calculate DTI? Is it on an individual basis or do the add it all up and look at it on a joint level?
DTI w/ new loan payment on a joint level would be 30%.
Wow that's a great question! I unfortunately have no positive data points to share since all of my joint loans were me as a cosigner and the other person as a mistake for me to sign against, lol. Hopefully someone else can put in some data points there.
Joint DTI really depend's on the situation. If the joint applicants are married and or/ share finances, live at same address, etc. then the DTI will be combined.
For example, if Applicant A has 5k monthly income and 1250 going out monthly for debts, and applicant B has 5k monthly income and 1250 monthly debts, then DTI before the new carloan would be 25% (2500/10000).
Now, if Applicant A and B live at seperate addresses and don't share finances, then the bank can possibly calculate DTI soley from the actual driver. So let's say app A has 5k monthly income and 500 monthly debt and app B has 3k monthly income and 1000 monthly debt and the vehicle is for app B and the estimate payment is 300 a month then app b would be at 43.33% dti.
It is important to note that not all bank's do this though, Wells Fargo does this route alot with co-signer deals, as they want the actual driver of the vehicle to budget/ be able to afford the car on their own.
Ultimately it really depends on the situation and the specific lender in regards to their underwriting guidelines.
I would suggest you go to a local credit union or bank and get preapproved. You can use DCU (good credit union, but not the only one) and apply online - if approved you can join, if not it's just a hard pull. Given your scores, income and especially the down payment I'd give you a very good chance for approval and DCU's rates are better than Capital One and/or dealer financing.