I am recently married and my wife needs a new car. Her credit score is only a 600, while mine is a 705. We were hoping she could purchase the car on her own so that I could use my good score to purchase our first home here in the next few months. The car dealer said that if we put me second on the car loan, it would bring the interest rate down on the car loan considerably and would have no bearing on me getting a home loan in the near future. Is this true? I do not want to make a foolish mistake with my credit that may end up costing us a substantial amount of money over the life of our home loan.
Adding your name to a new loan account, and thereby increasing your debt obligation, will certainly impact your loan request. It may be that the payment will be inconsequential, but it may also be that the cash flow and your debt to income will be impacted. A small decline in a mortgage rate can mean big bucks in the long run. The car dealer is trying to sell a car. Before making that purchase, go to a mortgage lender and asking him to prequalify you for a mortgage loan. That way you'll know what you will qualify for and how the new car will impact your ability to get the home loan you want.
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Adding your name to a new loan 