Impact of loans on mortgage scores

[Anonymous]

Hey all,

My husband and I have been getting everything in order to sell our current home and buy another. We were originally going to sell this fall, however after talking with our LO and realtor we realize the market is much more favorable in the spring and we could walk away with an additional 15k. Perfect. We can absolutely wait.

I was just offered a new job, pay increase, better benefits etc. However my commute time will increase by about 1 hour each day. With winter approaching we have started talking about getting a more reliable vehicle, we would have to get financing for this.

Here's the question, will taking a car loan out now, completely ruin our chances of getting a mortgage loan in about 5-6 months?

We would finance it under my husband who's mortgage scores are currently around 650-670. Would a new car loan tank his mortgage scores making it impossible to get into a new home? Our goal is just a 620 to qualify for FHA.

I understand this question could be posted in the car loan section, please don't yell at me.

Thank you!

[CreditInspired]

It is not a good idea to get any type of CC or loan 12 months prior to applying for a mortgage, and especially a vehicle loan which could cause havoc on DTI.

A few questions:

Are both you and DH applying for loan?

If yes, what is the lowest middle mortgage score between the both of you? Example: lets say his mortgage scores are 650/660/670 and yours are 645/655/665. The score used by lender will be 655. So do not guess or say around such and such.

Now if only DH is applying for mortgage, only his middle mortgage score, debt, and income would be used.

[homeloanexpert]

I would not recommend making any large purchases prior to applying for a home loan unless you've already run this by your loan officer. That purchase could just kill your deal. On a  side note. One thing that can negatively affect your credit score would be a payoff of an existing loan. I cannot tell you how many times I've had people apply for a home after trading in their vehicles and the dealership somehow didn't get paid off their loan on time and the borrower ended  up with a 30 day  late. Or the score dropped simply because their loan that had been reporting for 4 or 5 years is now paid off. Make sure you run all these questions by loan officer who you will end up working with.