Taking out an auto loan after closing on a home

Anonymous · ‎12-25-2019

Hello,
I've signed my closing papers for my house refinance on Monday. The loan funds on the 30th due to Christmas. My question is if there is any possibility losing the mortgage if I take out an auto loan on Saturday the 28th? Will they run your credit again after signing papers? The hard pull wouldn't be until Saturday. This is not a large loan. Before the refinance we were pre approved for 60 thousand, and we would be financing 14 thousand.

CreditInspired · ‎12-25-2019

Happy Holidays and welcome to myFICO

I think you have to ask yourself a question. Is it worth the risk? And IMO, if I were in your shoes--no siree! I would not apply for any new lines of credit, which could jeopardize the refinancing.

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EW800 · ‎12-25-2019

I am not expert in the area, however I fully agree with CreditInspired - just not worth the risk. If I am not mistaken, mortgage lenders typically do a credit pull just prior to funding. I don't think you want to show inquiries, indicating that you are auto shopping at the same time. Even if it is not much of an issue, I could see where it could delay funding while they ask you about it.

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NC_Mtg_Loaner · ‎12-26-2019

Don't do it unless you're lender is aware of the proposed new monthly payment amount and that information was included in your Final Loan application that you signed Monday.

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Licensed NC Mortgage Loan Originator

Anonymous · ‎12-26-2019

I would definitely agree it isn’t worth the risk, although I believe after you sign at closing the borrower is the only one with the right to rescind for 3 days, I can’t imagine they would unwind a deal after the loan has been closed and all underwriting signed off on. They would be in breach of contract.