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Old 07-15-2011, 02:20 PM
 
45 posts, read 182,790 times
Reputation: 37

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I know it's a bad idea to apply for any credit/debt before closing on a home but what about let say 2 days after closing on a home ? I would think even if after 1 week my credit probably still not update with the home mortgage and so would be easier to get a car loan.. maybe ?
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Old 07-15-2011, 04:31 PM
 
451 posts, read 693,297 times
Reputation: 230
wow, interesting question. I'll wait for a reply, too!
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Old 07-15-2011, 04:50 PM
 
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Well the fact is that all the credit reporting agencies do multiple updates of new mortages throughout the day so the odds of a lender not finding out you have a mortgage are pretty nearly ZERO.

Further whenever you apply for credit / new loan the lender asks you to list ALL debts and certainly they would use your mortgage payment to calculate your debt-to-income ratio to gauge how much they can safey lend to -- believe it or not the lender really does not want you to be in such deep water that they can predict they'll be repossessing the car...

The other issue is what sort of CREDIT SCORE will you have hours / days after closing on a home / getting a new mortgage. This is trickier to predict, but IN GENERAL the forumalae used by the credit bureaus to "score" your risk of default in the manner pioneered by Fair Issac do not penalize you for behaving in a rationale manner -- if you had a mortgage before and you are now getting a bigger house with a bigger mortgage that is NOT a sign that you are worse risk. In fact, over time (like six months or mmore...) if you stay current with a bigger mortgage and continue to mange / pay down things like credit cards and student loans your score OUGHT to go up...

SO, to summarize:

#1 -- Be honest with lender that you did just buy a home, they WILL see this on your credit report pretty much instantly.

#2 -- Assume mortgage won't really change credit score too much.

#3 -- If you can hold off your score ought to improve .
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Old 07-16-2011, 10:27 PM
 
Location: Lemon Grove, CA, 91945
4,536 posts, read 4,751,353 times
Reputation: 1625
Quote:
Originally Posted by google9 View Post
I know it's a bad idea to apply for any credit/debt before closing on a home but what about let say 2 days after closing on a home ? I would think even if after 1 week my credit probably still not update with the home mortgage and so would be easier to get a car loan.. maybe ?
I bought a home in Nov 2010, the lender didnt actually report to any of the agencies until 3 months afterwards. Well, at least from what I was able to retrieve on my credit reports.

However I am not certain if this is standard practice.
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Old 07-18-2011, 10:20 PM
Status: "Now working for a true portfolio lender" (set 17 days ago)
 
Location: MID ATLANTIC
3,976 posts, read 8,596,798 times
Reputation: 2983
Most mortgages aren't delivered to the investor until the first payment has been made. Where are you getting your mortgage? BofA? Wells? Or a smaller, savings and loan? Obviously if you go to the same place as your mortgage, yeah, thump yourself on the head. But, if you got your mortgage from say, Navy Federal or Local Regional Bank, or even, The Real Estate Company's Mortgage Company, there's a good chance it won't show.

What you do after you close on your mortgage and all is filed in the courthouse, you can do as you wish............Now, the next statement is going to seem bassakwards.....for whatever reason, after you buy a home (even right after), you can get almost any credit you want. Disclosing isn't only the smart thing to do, it's the legal thing to do. Lying on any bank application is a federal crime. Charges and prosecution are usually reserved for mortgages......
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Old 07-19-2011, 08:33 AM
 
45 posts, read 182,790 times
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my lender is through Sovereign Bank.. so you're saying mortgages usually show up on your credit report a day after closing with big bank ?
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Old 07-19-2011, 09:37 AM
 
Location: East of Seattle, originally from SF Bay Area
14,537 posts, read 17,620,178 times
Reputation: 10005
Auto loans are still easier to get than mortgages, they simply raise the interest rate for lower credit scores. You must have decent credit and income to get the home loan, so I can't see why you would be turned down for a car unless maybe it's a $240,000 Lamborghini. If you have State Farm insurance, they have their own bank for auto loans and your agent can get you a loan, for them your length of time as a customer is
more important than your credit.
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Old 07-20-2011, 02:41 PM
 
Location: Las Vegas/Williston
6,054 posts, read 5,454,480 times
Reputation: 2863
I actually purchased a car 4 months before I purchased a house. Everyone kept telling me that it was the worst thing that I could ever do. Even my wife. Didnt really affect our home buying purchase at all.
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Old 07-21-2011, 01:57 AM
 
451 posts, read 693,297 times
Reputation: 230
that means your credit was good enough and, even more importantly, the debt-to-income ratios! In that case, why not?
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Old 07-21-2011, 12:24 PM
 
Location: Albuquerque
5,553 posts, read 9,469,819 times
Reputation: 2462
Auto loans are a form of slavery. Why would anyone want one?
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