Loan approval chances?

[Halliep]

Trying to figure out if I will (a) get a loan (b) at a decent interest rate and (c) where its best to apply.  

My big concern is that I want to qualify alone without my husband's income, which makes my DTI look a lot higher.  But my husband had a foreclosure a few years ago so I want to apply alone.  (We've just been married a year, so his foreclosure was before I knew him and is not part of my credit history).  Any ideas?

Credit Score: 711 EQ (myFico), 695 TU (myFico), 745 EX (Fako provided from Experian's site)

AAoA: 9+ years, oldest account is 20 years old with no lates

# of positive trade lines: 20+

# of negative trade lines: 4

Income: $100,000 plus bonuses

Length of Employment: at current employer/firm 14 months, but in same industry (attorney) for 7 years

Previous Loan Experience: I've had multiple car loans over the past 15 years and good payment history.  Currently have a mortgage with no lates.  I've had three previous mortgages (dating from 1999 to present) with no lates.

Debt-to-Income (DTI): CC util is about 25-30% and I have overall cc limits of $29k, overall DTI is about 40-45% if you don't factor in my husband's income (it's much better DTI if I could factor his in, but I want to qualify alone).

Year of Car: 2012

Miles: 37000

Purchase/Refinance: purchase - $40,000

Requested loan term (XX Months): 48-60 mos

Down payment amount: 3000-ish

Co-borrower/Co-Signer: No.  My husband has some bad things on his credit report so I want to qualify alone (and did not include his income on the income listed above)

Other:  Couple of older baddies on my credit reports.  A few medical collections from 2010 (both under $100 and paid), some student loan lates in 2011.  No baddies in the past two years.  The last auto loan on my credit was for an ex-boyfriend's car which I financed for him through a local credit union, he had one 30-day late on there which unfortunately shows up on my credit.  That late payment was 4 years ago.

[Revelate]

I don't think you'll have much of a problem anywhere you go other than the DTI is highish but your income is solid; I'd look at the usual suspects - couple CU's and then see if the dealer could beat the financing.

That said, auto underwriting is different than mortgage: in auto loan underwriting the higher of the two borrowers scores on a joint application is used (edit: might not hold true with some CU financing).  This has been stated by multiple dealer F&I guys who have visited this forum, so there's no real penalty to having your husband on the loan.

[Halliep]

Thanks for the info! I didn't know that about comparing scores with auto approval. Aside from score itself, will they pull his credit report and potentially deny credit because of the foreclosure? Or if my score is higher (well, I know my score is higher) will they primarily consider my report?

[Revelate]

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@Halliep wrote:
Thanks for the info! I didn't know that about comparing scores with auto approval. Aside from score itself, will they pull his credit report and potentially deny credit because of the foreclosure? Or if my score is higher (well, I know my score is higher) will they primarily consider my report?

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Some lenders might, but an auto loan is the easiest loan type to qualify for other than the edge cases of secured credit cards and secured installment loans (or the corner cases for places which don't check credit at all).    People get auto loans fresh out of bankruptcy let alone a foreclosure from previously.  

If you need a car, you need a car, take the swing, but I think you'll be fine.  You'll get approval that much is certain, and I think you'll get a decent enough rate regardless.  Worst case if you get something which isn't as pretty as you'd hope, refinance it in six months or maybe a year anyway when all of your negatives are further aged.

[awp317]

mind if I ask what kind of car. For 37k miles 40k seems high unless you are looking at upper trim cars from BMW or mercedes or something. 

[Halliep]

It's an Audi Q7. Same thing I drive now but mine is older and has significantly more miles on it. And needs about $1200 worth of repairs (long story, but I jacked something up with the electrical system by accident). So I'm just looking to trade newer.

[dpechal]

Sounds like a waste of money, but you will be approved !