Profile picture for AntoineMcFadden

If i finance a car, would this affect me in terms of getting a mortgage as a first-time home buyer?

  • August 30 2013 - Broadview
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Answers (8)

Whatever the new car payment is, that's how much less house payment you would be able to qualify for. Also, the inquiry and new obligation will have a negative effect on your credit score. So, to answer your question, it depends:  If you were qualified to buy twice as much house as you want to get & your credit score is up over 800, it probably won't make any difference. However, if your credit score is right on the edge, and/or you are trying to buy at the top of your range, it could be a deal killer.
  • September 03 2013
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Lenders will calculate your debt to income ratio and base their decision on that and a combination of other factors including credit score, employment, available funds, etc..  The more debt you have out there the less you will be pre-approved for.
  • September 03 2013
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Lenders like myself look at multiple factors when someone like yourself is applying for a loan. Some of these factors include income, expenses, debt, credit score, assets, liabilities, etc. So potentially getting a loan for your car can affect your ability to get a home loan because it counts as debt, but this can be over powered by other factors like income and credit score. Also, if you do get a car loan make sure to make your payments on time so it won't hurt your credit score when you do apply for a home loan. Overall, it is hard to say if this will affect your chances in getting a mortgage because it depends on all the factors that I listed above.

Well I hope this helps! If you have any further question or if you would like a loan, feel free to contact me. Also, if you found this comment helpful, please leave me a review!

Good Luck!
  • September 03 2013
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It depends on your income. It may not affect it at all. ask your lender and Realtor for a free preapproval.
  • September 02 2013
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Profile picture for wetdawgs
Here's a link to Zillow's What Can I afford?" calculator.  It will allow you to at least get an estimate with different levels of debt.

  • August 31 2013
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Profile picture for AntoineMcFadden
Thanks guys! One more question and that is, what if the car payment is between 250 to 275 a month? and my credit card balances will soon be at zero? Should I still hold off on the used car?
  • August 31 2013
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Profile picture for Andrew Malak
It I'd a debt to income ration.
  • August 31 2013
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Yes, all debt you have is factored in to what the bank will lend you. Many people wait until after they buy something to get a lean on a car.
  • August 31 2013
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