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Help, How will an auto loan affect a mortgage application?

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samwise7
New Contributor

Help, How will an auto loan affect a mortgage application?

Hello,  I need a bit of help with this.

 

The DW and I are planning to apply for a mortgage in the Fall of 2009.  But we need a car now.  If I finance a car now will this have any adverse effect on the mortgage application later?

07/13/09 TU 627 - EQ 631 - EX 642
08/08/08 TU 514 - EQ 548 - EX 561
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Anonymous
Not applicable

Re: Help, How will an auto loan affect a mortgage application?

The only affect this will have is it will affect your DTI....in other words the $300 car payment is deducted from the max mortgage payment you can afford.

 

A new car loan only hurts a little until a payment or two is posted...then the lost points regain. 

Message 2 of 3
BrianB_The_Loan_Professor
Valued Contributor

Re: Help, How will an auto loan affect a mortgage application?


@Anonymous wrote:

The only affect this will have is it will affect your DTI....in other words the $300 car payment is deducted from the max mortgage payment you can afford.

 

A new car loan only hurts a little until a payment or two is posted...then the lost points regain. 


 

Agree it will pretty much still boil down to can you qualify with your debt to income

 

Brian

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Brian B The Loan Professor
Mortgage Banker - offering FHA, VA, USDA , and Conventional mortgages in all 50 states -

If I do not respond to a follow up question please feel free to contact me directly
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