Finance Odds?

[Anonymous]

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

[Anonymous]

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.

[Anonymous]

I should add:

Me

Gross Income: 45,600

Partner

Gross Income: 42,060

[Anonymous]

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%.

[Anonymous]

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.

[Anonymous]

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.

[pipeguy]

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.