trade in your current car for a new one before the purchase of the house? I have heard this could impact your credit.
2007-12-19 07:15:43 · 2 answers · asked by Latin Princess 1 in Business & Finance ➔ Renting & Real Estate
Often new credit accounts will impact your overall view. Some credit companies will look at this as un-established credit and view it your credit as stressed. Not official words but it impacts their view of your ability to handle more. I would wait, if the car you plan on trading is good until you have a approval for X's to purchase a home. Get pre-approved for the home first. (Make sure you get a fixed rate loan otherwise you could see major problems in the future on payments for your home.) Once you have a pre-approved amount to use in your new home purchase and possibly after you have purchased a home. The watch for the best car deal on the market and decided just how much you can afford and what interest rates they will offer. Buying the car will be easier than the house but watch your interest rates and be sure to calculate all expenses for your budget so life is not too stretched to enjoy.
2007-12-19 07:26:39 · answer #1 · answered by SHADY LADY 2 · 0⤊ 0⤋
Don't do it. Many car dealers will shotgun your credit to as many as 20 different banks and lenders. Each will pull their own credit report and your score will be impacted negatively. The higher your score the better your rate will be.
I am a mortgage banker in TN & KY
2007-12-19 15:33:27 · answer #2 · answered by golferwhoworks 7 · 0⤊ 0⤋