Will trading in my car and getting a new one jeopardize my in progress mortgage?

Deal Score0

Here’s my situation. I’m trying to figure out if this would be ‘ok’ ‘horrible’ or ‘not make a difference.’ I am buying the home I am renting. I am getting a VA loan. The owners and I have signed a sales agreement. I am pre approved for a loan and locked in at the interest rate. My credit has been pulled and the house has been appraised(it appraised for exactly the sale price) id like to trade in my car and get a new one. The car I want will be about 150 more a month. My loans done all, but the underwritting. The car loan shouldn’t be on my credit report, but is there anyway it could mess up my underwritting, interest rate, etc. Thanks everyone.

  1. Reply
    April 29, 2011 at 11:55 pm

    hold your horses on the new car, and wait until you close.

    this affects your debt : income ratio.

  2. Reply
    April 30, 2011 at 12:42 am

    Wait until your home purchased in closed! Underwriters have been known to make last minute credit checks and that extra $ 150 per month could queer the deal. Your lender should have coached you on this matter.


  3. Reply
    April 30, 2011 at 12:56 am

    You should not purchase any major items that will appear on you credit report until after the closing of your mortgage loan. You should have been told this by your mortgage consultant.

    Any items you purchase prior to closing might appear on the closing credit report that most underwriters obtain the day before the closing is to take place.

    By your purchasing a vehicle the monthly car note will alter your monthly out go of cash thus changing the ratios needed to obtain a mortgage loan to include a VA loan.

    If you have not purchased this vehicle please wait. Also consult your mortgage consultant on a constant basis especially prior to buying any major items.

    I hope this has been of some use to you, good luck.

    “FIGHT ON”

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