has anyone had a pre-approval for a home loan and then have a credit score change prior to closing?

I was recently pre-approved for a home loan. In the few weeks I was looking for a home, I also purchased a car ( my previous one had a breakdown and fixing it was not an option).

Well I bid on a house and it was accepted. Can the fact that I opened a new car loan change my loan amount for the home?I am worried that after all the work I have done to find a home I like, my home loan will be denied because of my car purchase.

Has anyone had this situation or a similar one?

By | 2013-08-26T23:19:00+00:00 August 26th, 2013|Mortgages Home Loans Interest Rate|6 Comments

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6 Comments

  1. KayAlley August 27, 2013 at 3:14 AM - Reply

    yes. everytime you get any loan or inquire about a loan your credit score goes down.

  2. zoe August 27, 2013 at 2:31 AM - Reply

    the more people that look at your credit score, for what ever reason, purchases, loans, etc…the lower your score goes.

  3. walkerhound03 August 27, 2013 at 1:38 AM - Reply

    I know that when I got preaproved for a home loan the loan was goof for like 90 days and then after that they would pull another credit report.

    The car loan changes your debt ratio.

    From http://finance.yahoo.com/creditreports/mortgage_and_home_equity/article/101265/Credit_Center

    “Normal conditions might include requiring an appraisal on the home to verify it is not overpriced. A clause allowing the lender to decline to loan if your financial situation changes substantially between the time of your pre-approval and closing is also common. But pre-approval should not carry a lot of strings. If the lender requires a second review of your credit and finances, seek pre-approval elsewhere.”

  4. Gitchy gitchy ya ya da da August 27, 2013 at 12:46 AM - Reply

    There’s a weasel clause in that pre-approval stating that they can change the terms of the loan without notice. You should have rented a car for a month if necessary, that wouldn’t have affected your credit rating. Then buy a car after closing.

    You just raised your debt-to-income ratio. The lender can make the terms of the mortgage much less favorable.

  5. stringfellow August 27, 2013 at 12:12 AM - Reply

    It happened to my girlfriend. She was already toeing the line as far as credit goes, so she had to consolidate some debt before she could go ahead with the purchase. It took a little time, but eventually worked out. It depends on how much the car loan was. If they think you’ve overextended yourself, there could be problems, but if you had excellent credit, you should have a cushion there.

  6. hombre_riendo August 26, 2013 at 11:20 PM - Reply

    I did

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