I had planned on applying for a mortgage loan Feb/Mar 2023 but now I have to wait. I bought a new car in May 2022 and that car was totaled Jan 1, 2023 when a driver ran a red light and hit me. I already received confirmation from the at-faults insurance company that my car loan will get paid and I'll get a check for the excess money. My outstanding car loan was $32K and the payout is $45K.
I've not applied for new credit since June 2022 in preparation of applying for a mortgage this year. That was until last week because I bought a new car. And of course my credit took a minor ding from the hard pulls.
As of last week my score is between 710-720, depending on the bureau. Credit reports are clean. Annual income is $160K and about $3500 in monthly household debt. Credit usage averages 4% with over $100K of unsecured available credit.
Given the recent car purchase, how long should I wait to apply for a mortgage? The homes I'm interested in are between $275K-$325K.
Thank you for any insight.
You would just need to provide the LO with new vehicle purchase paperwork. Your lLO will include your new car payment into your debt ratio for pre-approval and within a week Orr 2, they'd be able to order a credit supplement . It's a little extra work but nothing that would prevent you from moving forward
That's good to hear. Thank you.