advice please

Discussion in 'Credit Talk' started by mary, May 10, 2000.

  1. mary

    mary Guest

    My husband and I hope to buy a house within the next year or so. We have researched how much house we can afford and have decided we need to get rid of our car loan which we acquired 6 months ago so that our debt load is lower and we can also save up some money. My mother has a car she wants to sell and will give it to us for a good price and we can just pay her cash. Here is my question: will it impact our credit negatively to sell our car? We have made all pymts. for this auto loan on time but we have only had it for 6 months. Will it appear that we aren't as trustworthy or something if we sell the car? We just want to know if it will affect our credit in any way? Thanks.
  2. Don

    Don Well-Known Member

    Mortgage companies only care if you are paying a debt...unless it gets repossessed, or goes to collection, no one cares..
  3. mary

    mary Guest

    thanks-another question for yo

    Thanks for responding so quickly! I have another question. I know your debt to income ratio is very important when applying for a mortgage. My husband and I both have student loans. He has to start paying his beginning next month but mine are deferred for another year or so while I complete my master's degree. So, how will this fit into my monthly debt if we apply before I have to begin paying? Will they just use the amount I will be paying in the future or what? Also, could my husband just apply without me since I do not have a job (I don't work outside the home-we have a baby and I go to school part time). Sorry so long. Any info would be appreciated.
  4. JP

    JP Guest

    RE: thanks-another question fo

    Since at some point you will have to make payments on your student loans, they will be factored into your debt ratio based on what the payment would be if you were paying them now.
  5. Kelly

    Kelly Well-Known Member

    RE: thanks-another question fo

    Hi Mary,

    Yes your husband may apply without you, You have to sign off somehow though. We are doing the same thing. I'm not sure what the process is yet, however, He's only been preapproved. I guess I'll find out soon enough though.

    Good Luck

  6. kim

    kim Well-Known Member

    I disagree with JP

    I'm currently applying for a mortgage, my student loans are also deferred. My student were not calculated into my debt ratio, maybe because it'll be more than a year before I have to start repaying or maybe it depends on the lender.
  7. JP

    JP Guest

    RE: I disagree with JP


    It definitely depends on the lender and the amount of your loans. If you were a lender and someone had deferred student loans of lets say $50,000 due in 18 months, would you not include them in the debt ratio? Most likely not, because if you don't your overlooking about $500 a month in debt that will be there during the term of the loan.

  8. kim

    kim Well-Known Member


    I wasn't thinking of such large student loans, mine don't even come close to that amount. Thanks.

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