home loans/car loans?
eskimo01 asked:
does having a car loan interfere with the bank giving you a home loan? and does it decrease the chance of loan approval?
This entry was posted
on Tuesday, March 30th, 2010 at 10:59 pm and is filed under Home Loans.
You can follow any responses to this entry through the RSS 2.0 feed.
Both comments and pings are currently closed.
does having a car loan interfere with the bank giving you a home loan? and does it decrease the chance of loan approval?
April 1st, 2010 at 3:03 am
As long as you are making your car payments on time, your car loan will IN-crease your chances.
April 1st, 2010 at 5:00 am
Absolutely… in fact, all outstanding loans are taken into consideration when determining how much house loan you can afford
April 2nd, 2010 at 9:50 am
All debt will be calculated into your ability to pay. If your debt-to-income ratio is to high they could turn you down on the home loan.
April 3rd, 2010 at 5:29 am
Make sure you are paying your car loan on time and it helps to pay extra. Usually having a car loan will help the bank see that you are a dedicated to your loans and pay on time. I would go to the same bank as your car loan to get your home loan. It helps trust me. When we first got married we didn’t have much credit but I had a small car loan at a bank. We wanted to buy a house and we weren’t sure if we could qualify or not. (We had no credit cards or anything else we made a monthly payment on.) We went to that same bank and we qualified for the home based on the fact that we paid the car payment on time every month. I would talk to the loan specialist at your bank for more info. Best wishes with this!!!!
Edit: It is true that they also look at your debt to income ratio. They will not loan you the money if your car payment is high and your income is low.