USA Best order to take out multiple loans

[jrd8442]

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. My credit is in the excellent range, hers not so much. I know this makes me as responsible as her to pay it back, no matter what happens between us.

I consider myself to be a pretty good saver ... 2x my salary in the bank, 401(k) going, making almost six figures a year. But with interest rates being low, and the money I do have saved generating returns, I feel like now's as good a time as ever to borrow some cheap money 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 cash? Any thoughts and advice would be appreciated!

 

[kirby]

The order matters because as you take out each debt your credit rating will be affected. Will the first debt takeout prevent you from taking out the other debts? We do not know because you did not give the amounts involved and we do not know your credit situation (and you should not share that anyway). So lacking that info just take the debt out in the order of the most personally crucial to you first and the others later.

 

[jrd8442]

Thanks for the feedback. You got to the heart of my concern, which is that each loan will ding me. I wasn't sure if I could avoid that as long as I stayed to the good side of the 28/36 rule. Definitely wouldn't want a smaller loan to force a higher interest rate or another issue on something as significant as a mortgage. Much appreciated.