Posts: 7
Registered: ‎10-22-2007

Pay off car loan before obtaining mortgage?

Hi, all.


I have a auto loan that will be paid off in February of next year.  I'd also like to purchase a house a bit later this year.  I'm wondering if my CR would look better to a loan officer with an active car loan or a car loan that's paid off.  Will my credit score change when the loan is paid off?




Moderator Emeritus
Posts: 32,881
Registered: ‎08-04-2007

Re: Pay off car loan before obtaining mortgage?

What else do you have that's opened?


Lenders generally will remove your car pmt from DTI inside a few months prior to paying it off, so that'll help. Per FICO, it's YMMV.

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