@dannyb407 wrote:
So I bought a new car and dealer paid off what I had on the car I traded in, so now I have a new loan. We're also in the process of looking, and I repeat, LOOKING, at houses to buy. Today, we found the perfect one, the one that I have to have, and now the realtor is telling me because I got a new car loan (36k) and it hasn't reported, that my credit might drop 20 something points and I probably won't be able to get a conventional loan. Is this true? What do you think?
Don't panic. The amount a new car loan affects your score depends on lots of factors, like what else is on your report. It's never a good idea to car shop while you're getting ready to buy a house, but it's not necessarily a deal killer.
Did you use dealer financing? Do you know if they mega-pulled you or just had one inquiry? Sometimes dealers scatter shot the app and you end up with 5 or 8 or more inquiries. They are all supposed to be scored as one, but some banks and credit unions don't put the "auto" code on it, so it ends up looking like a bunch of new apps. If you already have inquiries this could hurt you.
Also, if you closed one good installment loan then opened another, it shouldn't have too much of an impact. Except, of course on your AAOA, but that is a small percentage of your score as well.
The biggest concern will be if the payment is a lot larger and it changes your DTI percentage enough to disqualify you.
Unless, of course you are barely squeaking by on the score in the first place. In which case, you need to work on other derogs and get your file right.
