Selling a Vehicle Prior to Closing -- Good or Bad Decision?

[Anonymous]

Hi Folks - I'm scheduled to close on 8/30. I currently have a 401K loan for 11K and an auto loan for 19K. I have two vehicles - one is paid for. I can sell the other truck, pay off the auto loan AND pay off the 401K loan. This seems to me to be win/win. Will this put my mortgage closing at risk? I've heard that it's not a good idea to make any major $$$ moves prior to closing. Appreciate any advice you can offer. Thanks

[Mortgage-Specialist]

Ive had.a couple of buyers do this recently in order to qualify. No negative impact. Just keep documentation in case underwriting asks for it

[Anonymous]

Thanks much!

[Anonymous]

I’d be concerned about the impact of paying off the car loan on your credit score.

[Anonymous]

Easy answer, talk to your loan officer first.

[Anonymous]

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@Anonymous wrote:

Easy answer, talk to your loan officer first.

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Agree with this. August 30 is pretty far away, so likely not a big deal. Are you pre-qualified already, with the loans you described?