Best order to take multiple loans

jrd8442

LoanSafe Member
Dec 2, 2019
1
0
1
I’m coming upon a situation in 2020 where three loan applications might converge: a mortgage (first house), an auto loan (new car), and co-signing a personal loan to help my other half (not yet married) pay down some debt ... college loans, credit cards, etc. I know this makes me as responsible as her to pay it back, by my credit is better than hers.

I consider myself to be a pretty good saver ... some savings, 401(k) going, making a decent salary for just me. But with interest rates being low, and the money I do have saved gaining interest, I feel like now's as good a time as ever to borrow so I don't touch my principal.

The question: What would be the best order in which to apply for and take these loans. My thought was highest amount to lowest amount, but we'd really like to get the personal debt paid down quickly. Does the order matter? Is it ultimately just a percentage of worth irrespective of which order the loans are applied for? Should I tackle part of these needs with savings? Any thoughts and advice would be appreciated.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,066
162
63
San Diego, California
www.loansreduced.com
Hi Jrd8442,
I would recommend starting the mortgage process before anything else. Debt-to-income may or may not become a factor when you get a new auto loan and co-sign for a personal loan. It's always a big no no to get new debt during the process of a mortgage transaction but if your income supports these new liabilities than it may be a non-factor besides supplying the lender with proof of the new debt (as they will get alerted to it).

If you would like for me to give you advice, I'm more than happy to do that. I'm licensed in just about every state across the country and have been doing this now for 14 going on 15 years. Here's my contact info: Erik Sandstrom, 619-379-8999 or [email protected].

Even if you want to get an idea of if it would make sense to get a car before the mortgage, we can do some manual calculations before pulling your credit.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,066
162
63
San Diego, California
www.loansreduced.com
Hi,

When we should refinance our mortgage?
Now is an amazing time, rates are pretty darn good! Give me a call when you have a free moment.