I hope someone can help me on this one. My car is just about to die but I've been waiting almost a year to get a home eq loan for improvements and credit cards. I've heard you can't get a home eq loan until you've been in the house for a year (I have one month to go). My scores are so-so (@ 640). Will getting a car loan ($15k) now destroy my chances of getting the equity loan ($10k)?
Regarding the "1 year" issue, have you talked to a banker? More important in their effect on lending terms, why are your scores in the low 600's? Regardless of whether someone will lend $25K to you on some terms, will your monthly cash flow support it? Do you need $15K of new debt just to drive? (If it is to hold a job, you can get wheels for less.)
I spoke with a couple of lenders six months ago and they told me they couldn't do anything until a year in the house. My scores are low mainly due to past bad debt management (lates, charge offs). Actually they used to be around 580 last summer until I found this place. Paying off my cards with the EQ loan would actually save me about $150 a month just in minimum payments. The car loan would just be replacing the other car loan which I plan to trade in. So I figure I'm at least breaking even. If I get the EQ loan before the car wouldn't that look better to the lender because the cards balances would be paid down?
You can get a home loan with being in a home for 6 months (this is called seasoning), there are a few programs out there that will offer immediate seasoning (being in your home). If you want to save more money...inquire of a interest only loan with a broker or banker where you should be saving more than just your car note. Sorry for edititing: If I get the EQ loan before the car wouldn't that look better to the lender because the cards balances would be paid down? Have you thought of refinancing with cash out and buying a car cash from the equity and therefor having just one loan and one pull of your credit since you are already thinking about doing a debt consolidation. There are many programs out there for you but you just have to know what to ask for.
