Paying off Auto Loan before closing?

I would not acquire any new debt without full disclosure to the lender you are using even if its a even trade this could muddy the water before closing but not a deal killer unless you debt to income ratio increases

Maybe. Contact your loan officer before doing this. It may or may not have any effect for your personal situation, but the big gigantic rule of thumb is to NEVER EVER take out any new debt, or change your financial picture in any way shape, or form while in the loan process. Once your loan closes, do whatever you want.

You need to call your loan officer and discuss this with them.. Typically, if you are paying off debt, then no.. it's usually not a problem.. but if the lender sees a large ($4000) withdrawal on your bank statement, they are going to ask about it and require you write a letter of explanation to be sure you did not take on any new debt.. I'm a preferred Lender with Arizona and California being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Make sure that your monthly payment for the new car will not be higher and notify your loan officer prior to making that decision.