Posted on: 23rd Feb, 2007 07:25 pm
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.
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.
8)
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.
8)
Thank you. I understand that part of the FICO score formula includes having different categories of debt that I've handled responsibly.
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 :)
Caron.
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 :)
Caron.
"My credit score is 700. Will I have any problem getting a mortgage? Will paying off the remaining auto loan help? Thank you."
Your credit score of 700 is quite good to get a mortgage and if you have a stable income then getting a mortgage with good rates will not be too difficult. I agree with others that paying off the auto loan balance will not be a great idea just before applying for the mortgage. Instead of paying it off keep the payments regular on it that will help your score to improve further.
David
Your credit score of 700 is quite good to get a mortgage and if you have a stable income then getting a mortgage with good rates will not be too difficult. I agree with others that paying off the auto loan balance will not be a great idea just before applying for the mortgage. Instead of paying it off keep the payments regular on it that will help your score to improve further.
David
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
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
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.
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.
