2006-07-03 11:46:17 · 10 answers · asked by greatdame53209 1 in Business & Finance ➔ Credit
There is almost no loan easier to get than a car loan and homeowners usually have an advantage. However, new credit sometimes lowers your credit rating for a bit and may impact what interest rate you'll pay on the car loan.
Buying a car before the mortgage may impact whether or not you qualify for the loan, so..your best bet is to buy the house, then wait 3-6 months before buying a car.
You can also test the waters earlier and see if you can still qualify for a good rate. As hard as the dealer will make it, you always CAN walk away if the terms don't suit you.
2006-07-03 11:54:25 · answer #1 · answered by Lori A 6 · 1⤊ 0⤋
I would not recommend buying a new car period. They lose 40 to 60% of their value in the first three years. Buy a low mileage used car and pay cash. I would be expecially careful since you just bought a home. A lot of times they will under escrow you the first year and raise your payment dramatically by hundreds of dollars a month the next year to make up a escrow shortage. The money you thought you had to buy new car and afford the monthly payment could be a killer if this happens after a year. I have been there and done that.
Save and pay cash for a used car.
2006-07-03 21:41:08 · answer #2 · answered by SHANE M 1 · 0⤊ 0⤋
Yes, if you pay your mortgage on time, you may find it easier to get a car. However, it may be a bad idea to get a car loan if you are in the process of buying a home right now. Buying the car could jeopardize your mortgage approval. Wait until you've been in the house a few months.
2006-07-03 18:50:41 · answer #3 · answered by Anonymous · 0⤊ 0⤋
New cars are for rich people and suckers.
According to the Federal Reserve, as of August, 2003, the average car loan term was 5 years, 3 months, (63 payments), up from 4 years, 4 months (52 payments) in 1998. Financial institutions commonly offer 6-year car loans, and a handful will even offer 7 or 8-year loans!
Yes, I want to be paying 8 years for something that goes down in value. Can we say upside-down?
Pay cash for cars.
2006-07-03 18:59:31 · answer #4 · answered by kvuo 4 · 0⤊ 0⤋
If you are looking to buy a house and a car, buy the house first. The lender or mortgage company will run a report to see what your total debts are to help determine how much you will qualify for. If you purchase a new car first, it will show as debt. Purchasing the car first could actually hurt the total home loan you can qualify for.
2006-07-04 22:51:47 · answer #5 · answered by winchamp 3 · 0⤊ 0⤋
it depends on your financial situation ie: your mortage payment history, finances to pay for car, equity that you've accumulated and credit history. Buying a car is easier in that there is alot less paperwork involved but if you plan on financing it, you still need a good credit history which is the main factor.
2006-07-03 18:53:44 · answer #6 · answered by Mr. # 1 · 0⤊ 0⤋
new cars are pretty easy to get because they can use the car as collateral. Although yes, setting up some good credit with a house helps.
2006-07-03 18:49:56 · answer #7 · answered by Samuel 5 · 0⤊ 0⤋
Yes it will be easier to get a new car.........But if you are having trouble getting a new car.........maybe you should work on your credit before you try yo get a house.
2006-07-03 18:52:25 · answer #8 · answered by Anonymous · 0⤊ 0⤋
You are confused.
To buy a new car you need MONEY and not a HOME.
2006-07-03 19:16:24 · answer #9 · answered by Anonymous · 0⤊ 0⤋
That will depend on how much money you make, if a lender sees that you have a new & large debt such as a mortgage & they feel you cannot afford it they may not want to finance you.
2006-07-03 18:50:43 · answer #10 · answered by garciasgirl9 3 · 0⤊ 0⤋