 kmcclary24
Joined: 10 Nov 2009
Posts: 1
1.45 Dollars($)
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Posted: Tue Nov 10, 2009 12:59 pm Post subject: How do auto/school loans affect my mortgage rate?
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Hi, I have a couple questions regarding purchasing my first home. As some background info, I only have about a years worth of credit history (2 credit cards), but I have never had a late payment or high debt/credit ratio or anything negative like that. I am also currently repaying a consolidated student loan on which I owe around $8,000. I have heard mixed reports on the effect of a student loan on your credit score. Anyway, I am looking to purchase a home in around 6 months or so, and was wondering if taking out a relatively small auto loan now would help, hurt, or not affect my eventual mortgage application. I have the option to go either way, but since I have limited credit history I was thinking an auto loan in good standing could benefit me. What are your thoughts on this?
Next, if all goes as planned and I purchase a home, my income will eventually be in the form of student loans, as I will be starting medical school next August. If my loan money is sufficient enough to cover the mortgage and all other life expenses, are there any pitfalls to financing a home this way for a few years? My hope is to put my loan money towards owning a home, instead of just throwing it away as rent money. I have known others who have successfully done this, but I wanted an expert's opinion.
Thank you! |
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