DTI question~Should I apply without husband?

ineedadvise · ‎05-30-2015

So I've been working diligently and my #'s are creeping up.

EQ 635

TU 652

EX 650

looks like with paying down some more of my cc debt I could get my TU and EX up over 660 soon. My husband's scores are low 600's. It doesn't seem like they will jump up without time and opening another cc account. We are in absolute need of a new vehicle by the end of August. So here's my question...should I try to get the loan myself?

Current income $50,000/annual $4166/month

Monthly debt: Student loan $110

min cc's $120

mortgage $1806 (full monthly pmt with taxes, ins, etc.~ I've read on here that if a spouse applies they only include 1/2 is that true?)

We have a loan with Honda Financial that we owe less than 10 months on, again is it my understanding that this would not count in the "DTI". We are looking at spending approx $25,000. I am trying to focus the next few months on whatever strategy makes the most sense. I owe approx $4,000 in cc debt. I ran the "fico simulator" and by paying off $1200 of the debt my scores move up above 660's. I can put money in the bank for the next three months and have $4000 for down payment or pay off cc's or a little of both.

My husband makes $72,000/yr with about the same student loan and cc debt payments...so we make plenty, I just want to know our best odds for being approved and also with the best rates...or am I being crazy and are we going to have high rates no matter what.

As always thanks for everyones help...I need it~

Dj4Money · ‎05-31-2015

@ineedadvise wrote:
So I've been working diligently and my #'s are creeping up.
EQ 635
TU 652
EX 650
looks like with paying down some more of my cc debt I could get my TU and EX up over 660 soon. My husband's scores are low 600's. It doesn't seem like they will jump up without time and opening another cc account. We are in absolute need of a new vehicle by the end of August. So here's my question...should I try to get the loan myself?
Current income $50,000/annual $4166/month
Monthly debt: Student loan $110
min cc's $120
mortgage $1806 (full monthly pmt with taxes, ins, etc.~ I've read on here that if a spouse applies they only include 1/2 is that true?)
We have a loan with Honda Financial that we owe less than 10 months on, again is it my understanding that this would not count in the "DTI". We are looking at spending approx $25,000. I am trying to focus the next few months on whatever strategy makes the most sense. I owe approx $4,000 in cc debt. I ran the "fico simulator" and by paying off $1200 of the debt my scores move up above 660's. I can put money in the bank for the next three months and have $4000 for down payment or pay off cc's or a little of both.
My husband makes $72,000/yr with about the same student loan and cc debt payments...so we make plenty, I just want to know our best odds for being approved and also with the best rates...or am I being crazy and are we going to have high rates no matter what.
As always thanks for everyones help...I need it~

What car are you interested in?

If you can get your EX or TU into 660's you will get Tier 1 rates from most lenders; some will give you Tier 1 rates for 650.

So the choice is yours. Waiting until August might yield better incentives (if you thought that wasn't possible) and we'll be closer to the Fed raising the prime rate which means I expect a fear based campaign to get your car loan now before rates go up.

Car/Light Truck sales are down 7%

Anonymous · ‎05-31-2015

All you need is 660 for Tier 1? I thought it was over 700.

ineedadvise · ‎05-31-2015

Thanks for the reply dj4money ~ We are looking at a Nissan Rogue. We live in New England and need FWD/AWD for the winters up here. Do you know anything about DTI?

Dj4Money · ‎05-31-2015

Yes lots of captive lenders are giving low rates for 660. DCU is giving competitive rates with 635 EQ....

ineedadvise · ‎05-31-2015

I'm trying to figure out if I should be applying for the loan by myself...if I qualify with my current DTI. Our current vehicle could crap out anytime...but I'm hoping it will get us through the summer.

Anonymous · ‎06-01-2015

@ineedadvise wrote:
I'm trying to figure out if I should be applying for the loan by myself...if I qualify with my current DTI. Our current vehicle could crap out anytime...but I'm hoping it will get us through the summer.

I assume the Honda Financial loan is joint? - under both you and your husband's name? (I hope that's not the car crapping out on you )

If that's the case (joint) and the Honda loan was paid responsibly, then I believe you would qualify on your own at a better rate than what your husband would receive; depending where you go to get financing. It wouldn't hurt to try and apply by yourself, first; and if unexpectedly denied, then simply add your husband as the co-applicant. The FICO score variance between both of your scores isn't THAT big of a difference; so it won't be financially catastrophic if it does end up as a joint loan.

I mean, a few points does make a difference; so I would try to apply solo, first.

ineedadvise · ‎06-01-2015

Yes, the Honda is a joint account, under both our names. It has (3) 30 day lates according to TU and EX from Nov 2011, March & Aug 2012. (this is correct) EQ has it as (4) 30 days late...the same three, plus March 2014 (I'm requesting payment history because I think this is wrong). Anyhow, this is probably why my EQ score is lower...So if you look at TU and EX it's been paid on time for the last almost 3 years...hope that counts for something.

And NO, this is not the vehicle crapping out! It's a Honda, my third...we drive the heck out of it (5 years old~150,000 miles, but going strong!) We also have a 2002 Nissan Xterra...that is understandibly on it's last leg..I literally cross my fingers everytime I drive it so it's a need...not just a want.

I do have a nice history of car loans on my CR...the current one with Honda; the Santander/Citifinancial that was the Xterra; hsbc/scusa the Accord I owned before the Fit; and Roadloans from 2005 also I believe from the original loan for the Accord, I refinanced 6 months later. I financed my first car at 19 (i think it was through Ford, even though it was a Honda Civic...that was a long time ago....no Repo's; collections...just a few 30 days on this one (we went though a rough patch 2011/2012 and this is why our scores are where they are at....they are coming back up!

Yes, a few points makes a difference, so I'm trying to keep the interest as low as possible. I just see some people qualify without income verification~ I don't remember when we bought the Fit what they asked for...we had just bought our house and my Accord was totalled so I found the car we wanted, went to the finance guy and was happy with the 5% loan on the full amt (no down payment ~ plus GAP insurance, taxes,title,etc.) we got..I didn't really think twice about it. I knew about DTI with the house purchase and together we are all set financially to qualify for a car loan, but I'm trying to be smart, and not end up overpaying on interest~