Trading in my car to lower my income/debt ratio... Will applying for a car loan hurt me?

[kimmiller112]

Ideally, you do not want any new lines of credit in the 6 months prior to applying for a mortgage.

[austinguy907]

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@kimmiller112 wrote:

Ideally, you do not want any new lines of credit in the 6 months prior to applying for a mortgage.

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The definition of TL's usually would be taking on more debt.  A simple refi into a lower rate / payment on existing property shouldn't make them jittery.  They will simple ask you to write a letter in most cases exaplaing you did X to get to Y.  I had to do a couple of letters because of some inquiries from a previous broker after shopping around and finding a better deal.  It's no big deal it's just an added step to say you haven't taken on additional credit obligations in the preceding 12 months.