Is it a good idea to get a vehicle 5 months before refianacing on my 2yr arm mortgage?

Question

After I refinance my score will drop, and I want be able to get a vehicle until it goes back up which take about 1 year.

Answer 1

Why would your score drop after refinancing your mortgage?

It is always a bad idea to add additional debt to your credit prior to getting a home mortgage. It adds to your front and back end ratios.

The ratios determine if you are able to pay a mortgage an still have money left for other debts that are not on your credit report such as utilities, food clothing and other misc items.

After the refinance and if you are able to afford the new vehicle this is the best time to acquire a vehicle.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 2

It is a bad idea to take any action that would affect your credit whilst you are looking for a new loan for your home.  After you get your car your score might drop, your debt-to-income ratio will go up and then you might not be able to get the mortgage.

Answer 3

absolutely not.  It will hurt you in possibly two ways.  One, depending on your credit situation, a new vehicle could bring it down. More importantly, the vehicle debt will be factored into your dti, or debt to income ratio on the back end.  If you have a big monthly payment, this could knock you out of being qualified for a mortgage.  If you need to refi, do that first

Answer 4

No, it is a bad idea to add more debt before refinancing.  Refinancing your home is more important than a new car.

Answer 5

It's a bad idea to be in debt for a vehicle, period.