I have a question? Hopefully I can find something out....How does it affect our chances of getting a home loan if we get a vehicle first. We applied to get a car and got approved through Ford with 12% but need to start somewhere right? How will that effect our chances of getting a home loan if we take it? Thanks
I have always heard, get the house first, then the car. I would think that in order to qualify for a larger home loan, you would want to have the least amount of debt possible. Plus, when car finance or credit card companies see that you own a home and are building equity, you're a better credit risk. Not to mention that you're less likely to pick up and leave when you have a vested interest in the property. Good luck either way! Lisa
Right, along with scores, they are going to look at your debt/income ratio. The standard was 28% debt to income 36% debt +house/income ratio. (Been a couple of years--so if I'm wrong please correct me!) I believe some programs will go higher, but you get the idea.
Teresa, WAIT.... if you buy a car now it's gonna go against the amount you qualify for on your mortgage. Now if that's ok with you then go get the car, but I know I wanted the highest amount possible just to have that extra ceiling money if I needed it (sometimes you see houses that's above your range but you can't pass up). For ex: I got pre approved for my mortgage with my car still active and the approved amount was $187,000. I just paid my car off, and they redid my application and I was approved for $241,00. that's a huge difference to me. That's around $55,000. Also, don't apply for any credit cards until you get in your house. Even if you have zero balances on your credit cards, the banks count your entire credit limit as a debt against you and once again lowering your approval amount. I guess they do it this way becuase your credit line can become a potential debt. Now I know why they say do not apply for any credit or buy cars when you are hunting for a mortgage. Do what the previous poster said and wait until you get your house-- THEN you can go buckwild with cars and credit because you have your house already. Good Luck.
Teresa, since your moving back stateside, I bet you absolutely have to have a car. If thats the case, and you absolutely can't wait, by the cheapest car you can til you get that dream house!
Well jlynn we do have enough money to buy about a $3-4000 car and pay off any collections that come back verified (cause most likely they will need to be paid for a mtg) and have a couple thousand in the bank still so we have enough we thought about just doing that. But you know a new car would be nice too, but then again after the home we can always go and trade-in or something....The only thing I worry about if we do that is what about furnishing our home...if it is dwindled down my a car, any collections and then traveling money....so we will have to think hard about this..... well it is late here bedtime, if you want to email I will check it in the a.m. a day off of work WOOOOHOOO! talk to you soon
Well, get some sleep, you do have some unusual circumstances moving back from overseas. In my email I recommended you talk to the mortgage broker about your car situation. Tell her everything your up against (need furniture, car, house, etc.), and see how she suggests the best way to go about it. Good luck!
