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

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
New Member

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

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

5 REPLIES 5
Regular Contributor

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

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
Message 2 of 6
New Member

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

Thanks much!

Message 3 of 6
Frequent Contributor

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

I’d be concerned about the impact of paying off the car loan on your credit score.
Rebuilding my credit. From low-mid 500s to 700s in two years!
Message 4 of 6
New Member

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

Easy answer, talk to your loan officer first.

Message 5 of 6
Regular Contributor

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


@GaleC wrote:

Easy answer, talk to your loan officer first.


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?

Jun 2019: EQ 713, EX 693, TU 708 (Mar 2017: 550's)

AAoA: 8.6 years, Gardening Goal: Spring 2020
Message 6 of 6