Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I feel your pain. I could use some surgery for a meniscal tear, but I drive a stick too and I'm alone most of the time, so it's being put off.
Personally, I wouldn't get a new loan unless your credit scores are up near 800. My husband's scores were around 770 when he bought his last truck and the credit pull/loan dropped his FICOs about 30 points (possibly because he had a very high average age of accounts). Then you'll have the mortgage company pulling your credit, which will cost more points. You could end up paying a higher interest rate on the mortgage then you would have without the new loan. The amount of damage really depends on what other debt you have on your reports and what your average age of accounts is.
I was always told that mortgage lenders don't like to see any new credit within the past year. Given how picky most of them are being now, they might be more forgiving about a smaller down payment than they will be about a new loan and a higher debt to income ratio (if the new car payment is higher than the old one).
If your credit is good it shouldn't be a problem to buy a new car before starting the mortgage app process. You don't want to buy the new car during underwriting, but a few months prior should be fine.
For example, my credit score has been around 720. I just moved to suburbs of NJ from Manhattan in early December 2011. I did not have a car for 3 years but purchased one in December 2011 (new car payment ~$330). I began my mortgage application process end of December 2011. The new car did not affect my credit score, nor did it have any affect on my mortgage application.
I hear that lenders don't like to see new credit issued within the last year but if you think about it, that is a bit unrealistic. If you have the income and credit history and can back up or justify the reason for the new credit then any reasonable lender shouldn't hold that against you.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
