I get approved for a $210,000 mortgage, but decline for a $10,000 auto loan?
We were going to buy a house in Ga, so we get preapproved for the Va loan up to $210,000. Which was much more than we were going to spend. However, we found out that we won't be moving until subsequent year. So my husband was going to buy me a new sports car because I am going to be home by myself since we didn't move. He went to Navy Federal and didn't get approved. It be only about a month following and we have nothing latest or changed on our credit. I am pretty confused. Does anyone have any light they can share on why this may own been?
Answers:
VA does not move about by credit scores- Navy Federal does. Also the inquiry from the mortgage company probably hit your score somewhat. Sounds to me like your ranking is a bit lower than Navy Federal requires. Source(s): 22 years mortgage business.
The criteria the VA uses to give a home loan is different, than that used to give saloon loans.
Also, a home is the collateral that would be used against default on the mortgage, should that happen. Homes hold their significance fairly well, and contained by a normal housing market, can be re-sold sour to cover the defaulted debt.
However, new cars are NOT devout collateral. They loose 25% of their value soon as it is rolled off the lot...and continues to reduce rapidly. They are also quickly prone to sabotage..scratches, dents, etc that lowers the value even faster.
With a VA approved loan, the government is guaranteeing to pay envelope at least 30% of your unpaid mortgage if you default.
With this amount of loan self approved, it may have put you near your not detrimental level of credit. Therefore the $10,000 loan was decline.
the VA is less harder on your credit since he or you are a veteran
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Answers:
VA does not move about by credit scores- Navy Federal does. Also the inquiry from the mortgage company probably hit your score somewhat. Sounds to me like your ranking is a bit lower than Navy Federal requires. Source(s): 22 years mortgage business.
The criteria the VA uses to give a home loan is different, than that used to give saloon loans.
Also, a home is the collateral that would be used against default on the mortgage, should that happen. Homes hold their significance fairly well, and contained by a normal housing market, can be re-sold sour to cover the defaulted debt.
However, new cars are NOT devout collateral. They loose 25% of their value soon as it is rolled off the lot...and continues to reduce rapidly. They are also quickly prone to sabotage..scratches, dents, etc that lowers the value even faster.
With a VA approved loan, the government is guaranteeing to pay envelope at least 30% of your unpaid mortgage if you default.
With this amount of loan self approved, it may have put you near your not detrimental level of credit. Therefore the $10,000 loan was decline.
the VA is less harder on your credit since he or you are a veteran
Related Questions:
I hold salaried a mortgage loan for a friend and she promised to pay packet me rear legs. she never salaried me rear legs and i want m
You lost the money and lost a friend.Dont do it again. Ask her going on for it first and if she still refuses the only...