Mortgage & credit score

Getting a mortgage in your name will definitely help you in building your credit score. But it is true that when you apply for a new loan, your debt to income ratio will be considered and if the ratio is too high you won't qualify for a loan.

here's a hint. if you have a car loan, it will be difficult to get a mortgage loan. if you have a mortgage loan, it will be relatively easy to get a car loan.

car dealers are far less worried about a debt ratio than a mortgage lender will be.

Thank you

That make sense.

If i defualt on car, they can come after my home, but if I defult on my home, they really cannot go after my car and claim thier money

Hahah

Thank you for yoru response

what i was really addressing is that auto financing agents will see that you've got a mortgage and consider you as credit-worthy even though your debt ratios may be excessive. mortgage lenders are so strict with ratios that having a car payment can be a detriment to qualifying for a mortgage.

and if you default on car payments, they simply repossess the car and sell it for as much as possible, then seek a judgment for any deficiency. that ultimately doesn't mean you lose the home though.

Thank you and it was really helpful