Is it hard to get an auto loan soon after getting a mortgage?
- Talking HatLv 61 decade agoFavorite Answer
a big one just depends on what job you have and maby cosigner
- 1 decade ago
There shouldn't be a problem as long as you have good credit and enough money to make the payments. They will look at you income to debt ratio and if it's still a good number then you should have no problems.
It's when people do it the other way that there can be a problem. If you are trying to get a mortgage and you go out and get a car loan and a loan for furniture and etc then the mortgage loan can fall through. After you have your mortgage loan closed and you've signed and gotten the final word that it's all closed, go for it. If you've just closed your loan, check with your loan officer that all the paper work has recorded.Source(s): Loan Officer
- 1 decade ago
Not at all. It obviously depends on your credit rating which is a concrete score known as a Beacon score or a FICO score. If this is high enough and your income to debt ration isn't too high (lenders like to see it under 45%, then again depending on the financial institution) this ratio is how much debt that you pay monthly divided by how much your monthly income is. If you're married, it will include both incomes and all debts from both of you. Having a new mortgage will decrease your credit rating by quite a few (around 40 points or so depending on your credit) but this doesn't mean that you can't get a car, in most instances you can talk to the financial company that will do your car loan and they will understand that your big hit was from a new mortgage.
Good luck and let me know if you have any other questions :)Source(s): Bank general manager.
- The First LadyLv 51 decade ago
It's not difficult at all. Nowadays auto financing is a snap - just be midnful of the interest rates. If you think you can afford it and your credit score is adequate enough then go for it. If you just purchased the home there's a good possibility it hasn't even hit your credit file yet therefore when applying for your car loan it won't show up as extra debt.
The credit score does go down after purchasing a home but if you've demonstrated credit worthiness and have a decent score then you have nothing to worry about it. If the mortgage isn't on the file yet - then there's also no need to include it as a debt...if you have an adequate history with other credit you can ride off of the payment history from those files making it appear that you have more money to play with.
I closed on my house three years ago in Oct and by January I was sitting in a stealership to purchase a car. The mortgage hadn't hit my file yet because I just executed my first payment the month before - the car stealers were ready to deal. I was given the choice to include the mortage on my application or leave it off - since it wasn't on my file yet it was basically my decision.
Also try searching online. I obtained financing for my most recent vehicle online. I submitted my request thru LendingTree.com and it didn't take long for car stealers to contact me with approval information. It cuts down on going from stealership to stealership and I was thoroughly pleased with the entire process. Tell them what you're looking for and they will find it - money talks.
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- You are lovedLv 51 decade ago
No it isn't period!
Only if your fico score is below 600 it would be, you'd get a high interest rate, but you can purchase a new car just about anywhere, remember it takes about 1 to 2 months for the mortgage or mortgages to show up on your credit report, so if you hurry you can get it easier, but having a mortgage shouldn't affect you, I know there are those who said the opposite, but that is not a car dealer's finance department concern, as long as you show you have the paying ability and capacity, lets say you['ll have someone else's help with paying either bills or mortgage it's not a problem car lenders don't give a care, this is only a car not a home, mortgage lenders would care not any other lenders.
- djLv 41 decade ago
Maybe. Depends on your credit score and your debt ratio. I like to see some pay history after someone has just gotten a new loan, no matter what it is. However if say your were paying rent, then bought a house, well you may not have really added a bill. Also if you had a car payment and are trading in, well if it doesn't add to your total monthly bills, then you may be OK. However if you didn't have a house payment, or if the car payment will be a new bill then there is a thing called payment shock. That is if your not used to a payment then creditors like to see you have adjusted your budget to it before adding another new payment on you.
My advise, wait at least 6 months before going for a new car. Get used to your house payment, develop some history, then your in a better negotiating position credit wise.
- daveowenvilleLv 41 decade ago
Harder? Yes. Hard? Not necessarily. A good idea? Nope.
Before you saddle yourself with additional debt, live in the house for a few years. You'd be surprised how much might need fixing in the short term, or how many things you might want to change or improve. Home ownership also takes a lot of time; you have a lot of maintenance to do, and that costs money you might not be anticipating.
If you've lived in the house for a few years, and you're certain that you can afford it, you'll be in a better position to get an auto loan anyway -- and you might (if the house appreciates) be in a position to get a home equity loan instead, at a lower rate.
- Anonymous1 decade ago
While I can't speak to your situation, I can tell you that I got a mortgage in September, co-signed an auto loan in October, and purchased a new car in December on fairly average credit. The best reason I can come up with as to why no one batted an eyelash is that it had yet to show up on any of my credit reports that I had gotten all these loans.
I would recommend getting either the free credit report you're entitled to every year, or using an online service to view your credit report before getting the auto loan.
- philip_jones2003Lv 51 decade ago
I dont have a credit rating. Ive not had any debts for over ten years and been in the fortunate position of being able to pay cash for everything......except the house and I dont owe much on that.
I know in the UK, the banks throw money at people. Its a bad arrangement and gets a lot of people in to trouble. Rest assured the banks NEVER lose out. Miss a payment and you get charged for the letter they send to remind you.
Its not about what the banks are prepared to loan. Its about what you are able to repay and still be comfortable. Its a mutually benefical arrangement right? Well negotiate those terms.
If your position is strong then you are better able to negotiate. If your bank doenst have the ability to negotiate terms then go elsewhere.
Even your mortgage can be surrendered and moved to another company if you want to do it. Remember that extra half a point of interest is being paid for a long long time.
- 1 decade ago
I've been in the auto finace business for 14 years. its really easy to get a auto loan after a mortgage but you have to ask yourself a couple questions. 1. do you have the income to support it? 2. do you need a car loan now?and 3. can you take out a home equity loan (if you have a lot of equity in your house there are a lot of tax breaks there where you can actually write off the interest you pay on the car loan) hope those help! ps more than half the answers you are getting are wrong and misleading.Source(s): auto finance 14 years and mortgage loan 2 years
- 1 decade ago
There are many things that influence your ability to gain approval for any type of loans.
First, I would say, is your credit score. I don't necessarily agree with this score, as you can have perfect credit and get a mortgage loan or even simply apply at a dealership for an auto loan and this will have a negative impact on your score. In my opinion it doesn't accurately reflect your credit repaying ability but many banks will base their decision soley on this.
Second is your debt-to-income ratio. This simply is the ratio of your income to your debts, such as any revolving accounts, credit cards, department charges, furniture loans and auto loans.
Third is your relationship with the lending institution. If you have been a customer with a proven track record it should be somewhat easier to get the loan.
Lastly is the loan to value. If the vehicle is worth the 80% (usually) the lender is willing to finance it should be okay.
Hope this infor helps!