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gakyle1 · Joined: 23 Feb 2007 Posts: 1 1.41 Dollars($)

I have a tax lien that was paid off in March 2006. No other late payments on credit cards ($0 balances) or on auto loan ($3500 balance). My credit score is 700. Will I have any problem getting a mortgage? Will paying off the remaining auto loan help? Thank you.

mcole · Posted: Sat Feb 24, 2007 9:55 am Post subject:

Obviously, a lot depends on your employment, your income, the amount of loan you're trying to get, etc. But based on the information you have provided, you shouldn't have any problem getting a loan.

My recommendation would be to NOT pay off the auto loan. Depending on how many other open trade lines you have, paying it off could actually hurt you.

Cool

Posted: Sat Feb 24, 2007 10:14 am Post subject:

Thank you. I understand that part of the FICO score formula includes having different categories of debt that I've handled responsibly.

Caron

Hi Gakyle,

Except in Mexico, in all other states, a tax lien is given priority over a mortgage. But as you have already paid it off, so getting a mortgage will not be impossible. But surely it can affect your credit score in the credit report for many years after you have paid off the tax lien.

Currently your credit score looks to be a good one to get a mortgage. So, I don't think there will be much of a problem.

Some lenders may object to the tax lien but then as it is paid off, they may offer you slightly higher rate of interest. And, repaying the auto loan may help provided the repayment period is exceeded. But if there is still some time left to pay off the auto loan, you can carry on with it.

Good luck Smile

Caron.

carnahandavid · Joined: 21 Dec 2006 Posts: 238 58.41 Dollars($)

dilipgagare · Joined: 26 Mar 2009 Posts: 58 0.01 Dollars($)

Hi
Yes you can get mortage loan if you have auto loan.Auto loan and mortage loan is diffrent and its ruls are also diffrent.

But possibly try to pay off all your auto loan so that you can pay mortage payment on regular interval.If you have enough income or credit then not an issue.Bot have have such problem
then in future you will face problem.

You thing on that or take help from any experts so that they can give you good advoice.

I thing you got an idea.

Regards
Dilip

gmakerley · Posted: Thu Apr 02, 2009 6:56 am Post subject:

dilip, you are setting a new standard, i think.

gakyle, i agree that paying off your car loan isn't necessary. i don't agree that doing so will negatively impact your credit score, however.

lediana0801 · Joined: 29 Jun 2009 Posts: 1 1.26 Dollars($)

Thanks so much for sharing the post.

credit auto

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Pay off auto loan before applying for mortgage?