Can I apply for a car loan and a home loan at the same time?

I've got my eye on a small bungalow and a standard four-door sedan. I'll need to borrow money to buy both. Can I get simultaneous loans?

The answer is yes, but there are good reasons to hold off on the car loan until you have closed on the home loan, if you can.
The reason to not apply for both at the same time is that lenders can see you are taking on significant new debt in two places. This means lenders are likely to evaluate you as a higher risk. This can result in less favorable rates on both loans, and if your credit history is not exceptional, you may even be denied one or both loans.
Your best bet is to apply for the home loan first. You’re borrowing much more money for a longer time, so it’s important to qualify for the lowest rate and best terms on that loan. Once the home loan is approved and closed, then apply for the car loan. Even if the rate is a bit higher (because you now have a mortgage), it will likely be better than if you had been approved for the car loan at the same time as the mortgage.
Jim Donaher
Answered on Mar 12, 2021
Jim Donaher is a freelance writer and manager with over 35 years' experience in the insurance, banking, and investment management businesses. He provides expertise on a range of topics and is able to explain complex industry information in layman's terms. Jim is the author of two books, including Call Him, He's Home: A Guide to Prayer for Regular People and Then Larry Smiled, a novel about life, death, accountability, and salvation. Taormina, Sicily is his happy place!

Did this answer help you?

Ask us a question by email and we will respond within a few days.

Have a different question?

You can meet us at our office and discuss the details of your question.