Trying to buy a home or getting a new car?

Question

My husband and I currently live in a nice apartment division.We pay $500 a month plus electricity, water/sewage, satellite, telephone/internet and other personal bills.We both have bad credit, see, I had bought a home but it was foreclosed due to our seperation at that time.We are back together now and are trying to decide and/or find a solution as to what we can do.We were told that we cannot buy a home unless someone with good credit buys it under his/her name and then we can refinance and have it transferred into our name after we can support it.Also, I have a 95 Isuzu Rodeo and have paid it off and have thought of trying to find a minivan, as we do have two boys and would like to find a newer car with less mileage on it.Should I keep this car or try to go ahead and find a newer one? Also, should we even try to find the way to get into a house again? I mean, you know, we need more space and etc.Please suggest

Answer 1

If your current car is running well and not needing much repair, I'd keep it for awhile longer. If it needs something major, or is nickel and diming you to death, consider something newer. But with bad credit, you'll pay a high interest rate if you have to finance it.

Your rent is pretty decent - I'd stay there for awhile rather than trying to find a way to buy a house again right away, and save as much as you can toward a down payment and closing costs.

Good luck.

Answer 2

If it were me I would go for the car 1st...what the person suggested with a different person buying the house and you living there is technically illegal, it is considered a straw buy. I have a hard time believing that you were given this as a viable option. I would find a new mortgage broker and find out exactly what you need to do to get your credit fixed inorder to buy a house under your own name.

Also your vehicle is about 13 years old...it won't last forever, so I would get the vehicle and make payments on it (which will help improve your credit a lot.

Answer 3

I would continue saving money as much as you can . Cut way back and non essential spending. Have a light Christmas / keep your cash and know that your gift will be the new house. Investigate house loans but do not commit. I believe houses are going to get cheaper and that home loans will get cheaper. Have your financing source ready over the next few months and keep watching the market . I think Jan. Feb. will be a good time to buy. Winter slows home sales.

If the mini van is essential do it , but , if you can get by without it / you are best to buy the house first and then get the new vehicle.

do not buy more house or car than you can safely afford . the budget should be what one person in your household can pay for. if one person gets fired or decides to leave , you can afford on one income.

work on getting raises / promotions at work to keep your income as high as possible. consider a second job for six months to save more money.

good luck to you and your family.

Answer 4

Do you have other negatives on your credit reports besides the foreclosure? You need to clear those up before you even think about buying a car or a home.

Keep the car you have and start saving money. You will need a nice downpayment to buy a house. There is no way you will qualify for a 100% financing deal with that foreclosure on your record.

Answer 5

Today every person has need of car, because it has become the necessary need for the people and status symbol also. If you have bad credit history or poor credit history and look for purchase a car, then it is very tough for you. Due to bad credit history, lenders are not keen towardyou can take this loan at better rate, because competition among lender.You can reduce your interest rate after talking with the lender

Answer 6

First - to handle the poorly reported human beings in this thread - there is not any COOLING OFF era on a used motor vehicle. None. no longer 3 days like human beings keep asserting. no longer 3 hours or 3 minutes. the 2d you sign papers, you very own a motor vehicle. No returns, no do-overs. That reported, the humorous factor is which you in the present day jumpt to "i choose criminal action!". If its sitting there clicking, what you have is a lifeless battery. hardly a declare for F Lee Bailey to get in on. Batteries die. replace your battery and initiate your motor vehicle and force it. additionally, as a 2006 form, there is a few final production facility guarantee. Get yoru VIN and phone the interior of reach sidestep broking's service branch. Have them pull the VIN and enable you to renowned if there is any final guarantee. if so, and that's extra beneficial than a battery concern, then take it to them. ultimately, could this be extra beneficial than a battery, and the motor vehicle is out of guarantee, merely call the dealership you acquire it from. there is not any ought to get your hackles up and initiate threatening criminal action over something so trivial as a lifeless battery. maximum sellers have get admission to to batteries from wholesale distributors, and could fortunately replace your lifeless one for unfastened, or approximately $25 tops. Have a rational, mature communication and you will bypass a lot added than freaking out.

Answer 7

well you could build up good credit first with a car..
but your mortage rates will be highly expessive reguardless of your credit once you clear up your credit 7 years prior to your in a good standing..

so someone with fresh clean credit (just paid all debt) bought a home for 120k montly payment (mostly intrest) is over 1,000 sooo if you think youi can handle a high risk payment then get the home.. reguardless your going to pay high unless your 7 year time limit of clear clean showing you can make good credit desitions you will get slammed with it!

Answer 8

Talk to a mortgage loan officer first before you buy a car. They can tell you what you need to do to qualify to purchase a home. A car payment may prevent you from qualifying on the purchase of a home. Once you buy a home, you can safely buy a car.

Answer 9

Keep your car and save money. The more money you have down on a house, the better you are.

Answer 10

Hi,

Try to do both if you are comfortable financially. Checkout http://homefunding.consumerplanet.info for finding low interest housing loans to suit your budget and own a dream home. Good luck!