Reply
Member
Doomed
Posts: 7
Registered: ‎10-22-2007
0

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?

 

Thanks!

-Doomed

Moderator Emeritus
llecs
Posts: 32,881
Registered: ‎08-04-2007
0

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.


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+