2006-10-10 04:46:45 · 13 answers · asked by micamocha 1 in Business & Finance ➔ Renting & Real Estate
Do not make any purchases where you credit has to be checked or sign any financing contracts until you close on the house. Yes, it could affect your ability to purchase. It will change your credit score and your debt ratio. Do it after you close.
2006-10-10 09:13:14 · answer #1 · answered by Karen R 3 · 1⤊ 0⤋
Good payment history is always important.
However, if you are going to be purchasing a home soon, you should hold off on any major purchases (such as a car) until after you close on the home mortgage. The car can wait.
The reason for waiting is that you will not acquire much of a payment history in the next few weeks or months. So, this added debt will actually reduce the amount of principle you can borrow for the house.
Good luck!
2006-10-10 11:55:49 · answer #2 · answered by Dave 6 · 0⤊ 0⤋
Some lenders will run your credit report right before you close on a home to see if you financed a down payment or points on a loan or if you went spending happy. My suggestion is to be sneaky about it. Buy the house first, shop for a car second. The same day or next day after you close on your house, buy the car. Your mortgage won't show up on your credit report until a month later.
2006-10-10 12:06:16 · answer #3 · answered by emmie8750 4 · 0⤊ 1⤋
Yes it will have a negative impact on your credit rating for a mortgage because it is determined by the amount of $$ you will have to make the payment if you are financing the home. If you by a car now make sure you pay cash and DO NOT take out a loan for it. Once you purchase the home ( close on it) your credit rating will increase and you will be able to get just about as much credit from whom ever.
2006-10-10 15:02:13 · answer #4 · answered by Teetee 2 · 0⤊ 0⤋
You need to buy a house first. I have been thinking about buying a house and a car .my real estate guy told me that I need to buy my house before I bought a new car. It can cause you to not get approved for you home loan.
2006-10-10 12:11:07 · answer #5 · answered by fairy_tale_dreams 2 · 0⤊ 0⤋
No, if you are well qualified for the loan and your total debt ratio does not exceed the limits for the program you are being qualified for once you are carrying this monthly car payment. Talk with your Loan Officer first and run all the numbers to make sure. Don't risk your home purchase.
help@choicefinance.net
2006-10-10 13:04:16 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Depends on your fico score. If you have a low score (620 or below) - don't do it unitl after the house loan funds. Even an inquiry from a car dealer can lower your score and effect the chance of your getting a home loan or it may raise your interest rate.
2006-10-10 12:58:05 · answer #7 · answered by sunshine 4 · 0⤊ 0⤋
But the house first then the car. It would take about 2 months for the real estate account to hit your report that way.
2006-10-10 12:07:36 · answer #8 · answered by Luckys Charm 4 · 0⤊ 0⤋
buying the car wont necessarily mean it will stop you from buying the house but it will lower the amount of "tipical/traditional loan" a bank might offer you. Remember the more "bad" debt you have the less a lender will give you to use.
2006-10-10 11:56:16 · answer #9 · answered by jgl_09 1 · 0⤊ 0⤋
It depends on your credit history and cash flow / income
(ability to pay off both).
If you make car payments on time it could actually help your credit.
I have the same problem. I need a new car but wife wants a new home.
2006-10-10 11:52:05 · answer #10 · answered by goldenboyblue 3 · 0⤊ 0⤋