I close on a first house purchase in a few weeks. I need to buy a new car asap though. Does anyone have any idea what happens to your credit score immediately after purchasing a house?
2006-08-13 14:36:18 · 4 answers · asked by Johnny Ballgame 2 in Business & Finance ➔ Credit
I only shopped two mortgage brokers so I dont think that is going to hurt me too badly. I know not to do ANYTHING until it closes (but thanks for the reminders on that). I guess the best thing to do is purchase the car immediately after I close on the loan before the mortgage shows up on my credit? (Could I get in trouble for not disclosing that info when applying for the car loan?) Is it possible that the mortgage could actually help me out after about 3-6 months of healthy payments though?
2006-08-13 15:52:35 · update #1
To get the best rate on a car you need a 700 fico, no interest 0 down, a dealer call exceptional credit a 700+ fico.
A mortgage will improve your fico like no ohter form of credit, my score jumped 30pts when I bought my first home in Dec. I closed in Dec and the score increased in March. April I bought a rental home, my score jumped another 25 in June.
If you have average credit and need a car, go buy one. Dont tell anyone, that is working on your Home loan!!! I do mortgages and the biggest mistake a borrower can make is buying a car30-45 days before the home loan process begins. We run your credit and you have a new car, your new car doesnt show on our credit when we run it. But in 2-4 weeks when the bank begins working on your loan, the new car payment has showed up and throws off our calculation of debt to income. It shouldnt kill your home purchase just might mean we have to switch lenders fast.
2006-08-14 05:29:06 · answer #1 · answered by Jacque w 3 · 0⤊ 0⤋
Honestly, your score will kinda tank. A mortgage loan and all the shopping for the best loan takes a lot of points from you credit score. If you had a really good score before the mortgage loan, you'll still have a decent score. In any case, go out get the car loan. You might have a high APR for a while but you can always refinance your car in 6 months and get a better rate.
2006-08-13 15:10:03 · answer #2 · answered by bella_4624_19 4 · 0⤊ 0⤋
Creditors report your status with them once a month. You will have a time period, depending on when you close vs. when the creditor reports, in which your home purchase will not show. The fact that the mortgage company ran your credit WILL show, but that is not that serious. Anyway, DO NOT buy the car before you close on the house since the mortgage company runs your credit again right before closing, and if new debt shows up, you may not qualify for the loan anymore. Whether the car lender approves you depends on your credit score, which could be affected by the home purchase, and your debt-to-income ratio (total debt balances divided by total gross income). Car finance companies will accept less than perfect scenarios becuase they figure that most people DO HAVE a mortgage. Be Cool
2006-08-13 14:48:08 · answer #3 · answered by siznaggle_tooth 1 · 0⤊ 0⤋
Your credit score will take a hit because of the credit check run by banks. Wait until after the house is closed on. Your credit score will still be lowered, but with an asset like a home, you may be more likely to get the loan needed.
2006-08-13 18:19:45 · answer #4 · answered by endsjustmeans 3 · 0⤊ 0⤋
Well it all depends on how many brokers or bank you had to run the credit. If you didnt have many over a short period of time then you will be fine but go do now it takes about 30 days to even show up on your credit!! GO But go to the place you want to buy from and dont have alot of people running your credit better yet wait till the day it closes. 2 days prior to closing some banks re-run your credit you dont want any inquiries hurting you then canceling the loan for the home. so wait till the day of closing to buy that new car
2006-08-13 14:55:50 · answer #5 · answered by tashafleming25 2 · 0⤊ 0⤋