to avoid a serious decline in credit score, i heard a person should buy a car the day after closing on a home. any comments or knowledge?
2006-08-04 08:48:00 · 8 answers · asked by greatdame53209 1 in Business & Finance ➔ Renting & Real Estate
The way they figure out how much you can afford to pay for housing is different from a car loan. The monthly debt for a car loan counts against what the bank will use to calculate monthly mortgage, principal, taxes for a house.
Even more important is to have no credit card debt. That counts against you big time in figuring out how much house loan you can afford,
Based on this, buy and close on the house and then buy the car.
You'll be able buy the most amount of house without impacting your ability to buy a car.
Don't over extend yourself.
2006-08-04 08:57:30 · answer #1 · answered by Carl 3 · 0⤊ 0⤋
Your credit score will take a hit if you buy a house -- I know because mine did 2 1/2 years ago when I bought -- so buying a house and a car at the same time isn't such a bad idea as long as you can afford to make the payments on both. Don't get in over your head. You should have enough income to pay all of your bills, feed yourself, put gas in your car, take care of all the incidentals like dry cleaning and haircuts and that sort of thing, and you should still have money left over for entertainment and savings.
2006-08-04 08:53:47 · answer #2 · answered by sarge927 7 · 0⤊ 0⤋
Get the home first. They will scrutinize your credit score more closely. Don't buy a car unless you need it. Most places will finance anyone for a car, so don't sweat it. As long as you pay your bills, your score should not decline enough to warrant not getting an auto loan.
2006-08-04 08:53:03 · answer #3 · answered by Greg 5 · 0⤊ 0⤋
Why would a major purchase like buying a home bring down your credit score?
2006-08-04 08:53:32 · answer #4 · answered by sdarp1322 5 · 0⤊ 0⤋
Buy the home first with www.ziprealty.com you get a rebate so then you have money for down payment on a car after spending your life savings on the house
2006-08-04 13:41:36 · answer #5 · answered by kcbrown1979 3 · 0⤊ 0⤋
Buy the house 1st then the car
2006-08-04 08:52:24 · answer #6 · answered by Anonymous · 0⤊ 0⤋
sure you could, in case you have the registration quantity plate, the identify signed over on your call, and coverage. Do the transaction on the DMV workplace and contact you coverage agent a similar day you're procuring a automobile.
2016-09-28 22:05:58 · answer #7 · answered by ? 4 · 0⤊ 0⤋
Thats true
2006-08-04 08:54:05 · answer #8 · answered by Anonymous · 0⤊ 0⤋