2006-10-12 11:05:01 · 14 answers · asked by Guy 29 2 in Business & Finance ➔ Renting & Real Estate
buy a car before a house
What other choice did you give me as an answer?
2006-10-12 11:08:01 · answer #1 · answered by Clarkie 6 · 0⤊ 1⤋
It's always bad to buy a new car, especially if you're financing it (ie, you can't afford it). Buy the dealership demonstrator (never previously owned but as cheap as a used car) or get a used car that's just a year old. Usually those cars were only owned briefly and are in near perfect condition--but they cost 30% less. If you're buying a $20,000 car in cash, then go for it; it won't affect your ability to get a mortgage or anything else. But if you're financing it then you need to think twice. It will affect your mortgage structure and/or loan amount. Lenders like your total debt payments to equal 40% of your income or less (36% is ideal). This includes credit card payments, car loan payments, student loan payments, and your mortgage. So if 20% of your income is going toward your car payment, then they'll only give you a mortgage equal to 20% of your income--and that's if you have absolutely no other debt. The worst part is, in order to qualify you for a higher loan amount, they'll offer you ARMs and other risky mortgage products. These lower your monthly mortgage payment without lowering your loan amount. What that means is you accumulate less equity in your home, pay much more interest over the long run, and have to either pay to refinance in a few years (if you even can) or watch your payment jump up by hundreds of dollars a month. Get a fixed rate mortgage. And if you want a bigger mortgage, you should be focused on saving for a downpayment and getting rid of existing debt, not adding more.
2016-03-28 06:50:38 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You mean "should I buy a car before a house, or a house before a car?" I'm sure you do. Well, I would go with the car first, they're cheaper. It allows you more time to save up for the house. If you buy the house now, you may end up regretting it because later on you could realize that you could have had a better house, not a "oh-it-will-due" house. Save up, get a better house!"
2006-10-12 11:11:41 · answer #3 · answered by Val 2 · 0⤊ 1⤋
In terms of investments, definately a house....In terms of neccesity, you do need some wheels! If you want to buy a used cheaper car, and also put a down payment on a house, this would be the best of both worlds! In ten years you will be so much better off due to the real estate investment! Best of luck !
2006-10-12 11:15:15 · answer #4 · answered by Anonymous · 1⤊ 0⤋
I am assuming you meant "or a house before a car", in which case you need to check with your mortgage lender and see if it will make your credit score too low to be able to qualify for a loan still if you get the car. Otherwise, you should get the loan to buy the house first and then get the car. Much easier to get a car than a house.
2006-10-12 11:12:20 · answer #5 · answered by Anonymous · 0⤊ 1⤋
If you don't mind the inconvenience of public transportation, I would recommend that you go with a house. I'ts a better investment with a strong potential to increase your wealth. Maybe you can get both by getting into a starters home like a condo and have enough for a car. It most areas of the country, this is a good time to buy, anyway.
2006-10-12 11:17:22 · answer #6 · answered by jd 2 · 0⤊ 1⤋
Buy a car. It is a tool with which you can go to work, and get paid and earn money for a nice down payment for a house in the future. Hose prices are falling, the real estate business is moving from a seller's market to a buyers market, which means that there is less demand, and buyers can be pickier. Just wait, and follow the house prices(the sale prices, not the listed prices).
Good luck.
2006-10-12 11:13:10 · answer #7 · answered by Anonymous · 0⤊ 1⤋
Buy a RV and then you have both. lol just kiddy
I think that you need a car to go to work so you can buy the house. I say buy the car rent a place to live and save and then buy a house.
2006-10-12 11:08:07 · answer #8 · answered by phat973 2 · 1⤊ 0⤋
I think I know what you mean ...
A friend told me to buy a house first before you buy a car ... Unless you purchase a car in cash, then it should be okay ...
Some Bank do not like to see you having too many bills/payments ... Unless you have high down payment ...
2006-10-12 11:11:15 · answer #9 · answered by Little J 4 · 0⤊ 1⤋
ok so you got soooooooooooo many answers of course you buy a house before a car and this way you dont need to worry about if the car has a garage :-)
good luck
2006-10-12 13:11:47 · answer #10 · answered by Anonymous · 1⤊ 0⤋
buy the car
2006-10-12 11:11:59 · answer #11 · answered by FLOYD 6 · 1⤊ 0⤋