Auto Loan and Mortgage Timeframe

[Anonymous]

I'm planning to apply for a mortgage in the next few months.  I've used a couple of credit simulators to check the impact that getting a car loan would have on my score and it seems minimal, but I don't want to do anything to jeopardize obtaining a mortgage.   I know that an initial drop is to be expected but I also know that making on time payments will boost my score.  Does anyone have any advoce or experience to shed some light on how long before the payment history will take to show the increase?  Thanks!

[ezdriver]

It generally takes a couple of months for auto loans to show up on your credit reports. I would hold off on the auto loan if you are within six months of trying to buy a home. By that time, your auto loan would have been reporting for a few months and your credit score would reflect it.

[StartingOver10]

Agree with EZ.  It is best to get the mortgage first - get closed and then go for an auto loan.

I see far too often a new car loan impede the mortgage - at least the amount of mortgage for the property the buyer wants to purchase. The auto loan may impact the amount of mortgage for which you qualify (depending upon your DTI).

[Anonymous]

Thanks! I kind of knew that was the answer... it's just not the one I was hoping for!

[Anonymous]

Figure the DTI with the new car payment.

Generaly I wouldn't buy a ride if I was gonna buy a house soon.  But I'll say this, if I needed a dependable car to get to work everyday?  I'm gonna get a ride, because where I come from being late or not showing up for work ain't good.  They'd let me play the car broke down card once, maybe even twice, but after that you gonna get time off.

So if your money guy asks why ya bought a new ride, I'd tell him, "to get to work."   And he'll understand.