PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
Can you get a mortgage while paying a car loan?
Can I have a car loan and still get a mortgage? My girlfriend and I want to move out of our apartment and have started looking at houses together. We're really excited to own a home for the first time. The issue is my car is very old and is starting to have some pretty significant problems—to the point where I think I need a new car.
Liz Jenson · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Buying your first home is such an exciting milestone in life! The good news is you can get a mortgage while paying a car loan. However, it is usually more difficult.
When you apply for a mortgage, your lender will take a look at your credit report. An outstanding car loan can impact your creditworthiness. To position yourself for success, look up your credit score and find out how you can improve it on websites like
Credit Karma
.Holding a car loan will also increase your debt-to-income (DTI) ratio. A higher DTI can lower your chances of getting approved for a mortgage or decrease the loan amount for which you’re approved.
Your lender will look at both your credit and your DTI ratio to determine whether or not you can make your monthly house payments. Requirements vary by lender, so be sure to check your lender’s specific criteria surrounding home loan qualification.
Whether you decide to buy a house, a car, or both, you’ll need to adjust your insurance accordingly. The
Jerry
app will help you find the best rates on insurance, including bundles for home and auto. That way, you’ll have one less thing to worry about when you make the big move.”View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies