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Established Member
sdotlow
Posts: 82
Registered: ‎05-06-2013
0

Re: First time buyer questions

[ Edited ]

My SW just updated my CS and I've gone up to 720.  I didn't make the additional payment on time to have it hit before my statements close date.

 

So now I'm at a point where I can either see what my 720 will get me, try and update my account information with Bank of America and hope it pushes a mid cycle update to get me my 740+, or wait until my next billing statement drops for it to update again mid July.  I'm not sure how well the 720 will play with lenders.  My personal CU has told me 740+ gets you the top APR%, which I want.  They offer 66 month terms, which I like.

 

I'm also unsure about this aspect of getting a loan.  Do I request X dollars in a loan?  Or will the lender tell me how much I qualify for?  I'd prefer the later, as I don't want to ask for too much.  I know I'm looking for at least 30k, ideally 32-33k.  I could only need 27k, but I want to keep options open, and with my DTI the 32-33k should be acceptable as I would be well below 36% back end DTI with it.

 

Any thoughts / advice much appreciated.  I went for test drives yesterday and fell in love.  I want to start getting the ball rolling if at all possible.

 

Edit:  Just updated my account info with BofA.  We'll see this week if the mid cycle update trick worked.  *crosses fingers*


Amex CS scores - EX-745 / EQ-745 / TU-767 (6/28/13)
BankAmericard Cash Rewards - 10k, MAFCU Visa Rewards - 10k, Chase Freedom - 2500, Discover IT - 2000, Barclay Apple - 2000, AMEX BCE - 2000
Gardening as of 6/28/13
Regular Contributor
Hoya08
Posts: 125
Registered: ‎06-05-2013
0

Re: First time buyer questions

I'm not sure if BOA will send an update mid-cycle, so your score may not change :smileysad:

 

As for the loan amount, if you already have your sights on a particular car, request a number that will cover the cost of the car you're interested in (to include registration, taxes, fees, etc).  If you're still shopping around, ask for an amount that will cover the most expensive car you're comfortable with.  

 

When you purchase the car, the bank will adjust the loan amount to their valuation of the particular car you're buying.  Also, depending on which financial institution you choose, they may extend a loan up to 120% of the institution-determined value of the car.

Established Member
sdotlow
Posts: 82
Registered: ‎05-06-2013
0

Re: First time buyer questions

I requsted a product change on my BofA card, so I'm hoping that should push through to the credit bureau and get my credit score updated this week.

 

That being said, I'm looking for some advice. I have 2 options at this point.

 

1) Wait for my credit score to update to 740 and apply for my loan with no down payment in hand.  This would get me a car now, and keep me from having to deal with public transportation and other logistic nightmares I deal with as a result of dealing with public transport.   My concern is getting approved for a 30-35k loan with no down payment.  740 CS / 8% Utilization / the auto loan would put me at 32% back end DTI, so it should not look bad to the lender so to speak.

 

2) Wait until the middle of July when I have around 2k to put down / play with.  My concern is the availability of the car I want.

 

This will be my first vehicle at 31 years old.  The adult side of me says wait until July.  The impatient side of me is screaming to just go get a damn car.

 

Thoughts / Suggestions?


Amex CS scores - EX-745 / EQ-745 / TU-767 (6/28/13)
BankAmericard Cash Rewards - 10k, MAFCU Visa Rewards - 10k, Chase Freedom - 2500, Discover IT - 2000, Barclay Apple - 2000, AMEX BCE - 2000
Gardening as of 6/28/13
Regular Contributor
Hoya08
Posts: 125
Registered: ‎06-05-2013
0

Re: First time buyer questions

[ Edited ]

I understand your frustration with public transportation... it was a pain for me while I was going to college in Southern California :smileyhappy:

 

As for your options, attempt to keep emotions out of the car buying process.  Yes, emotions is a part of it, finding the "perfect" car and hoping to buy it before someone else does, but you don't want buyer's remorse if you jump to early, ie could have/should have/would have a lower payment due to a lower interest rate.

 

IMO, option 2 is the best route if you're unsure or uncomfortable with the possibility of obtaining less than "top-tier" rate... you're "only" waiting another 30-days.

 

In regards to your concern about the unavailibility of your car, if it's a new car, the dealer can do a dealer-trade with another dealership.  It may not be exactly to your specifications, but it may be close enough.  

 

Established Member
sdotlow
Posts: 82
Registered: ‎05-06-2013
0

Re: First time buyer questions

[ Edited ]

Ok well then option 1 might not be a bad idea at this point, considering what you've suggested.

 

I did a product change today on my BofA card, which SHOULD prompt a credit push on the bureau.  This would bring my score up to 740.  If this does not take place, I will be waiting regardless.  I'm not getting saddled with a higher APR, period.

 

But if my credit score does update to 740 this week, then I can safely not worry about getting approved for the loan due to not having a down payment is what it sounds like, which is my concern.

 

Edit:  I have this anxiety about applying for the loan without a down payment.  Is it really that easy to get a 30-35k auto loan without a down payment?  Am I worrying for nothing?


Amex CS scores - EX-745 / EQ-745 / TU-767 (6/28/13)
BankAmericard Cash Rewards - 10k, MAFCU Visa Rewards - 10k, Chase Freedom - 2500, Discover IT - 2000, Barclay Apple - 2000, AMEX BCE - 2000
Gardening as of 6/28/13
Established Member
sdotlow
Posts: 82
Registered: ‎05-06-2013
0

Re: First time buyer questions

Performed my product change on Monday.  Wednesday and no credit score update.  Getting worred.  Debating giving it until tomorrow to update.

 

Any idea what time they usually go through for score updates?  Is there even a time?  I know my account closed on 6/12 and was updated in 6/15 (saturday), it was in the morning I think around 9-10am prior to my going to get groceries.

 

My CU's special on financing ends in 10 days.  The vehicle I want hits the lot this weekend, and they go fast.

 

Current EQ Beacon is at 720.  Wondering how much of a difference 720 vs 740 would make on my loan application.

 

I want to jump on the vehicle this weekend.  I want this car.


Amex CS scores - EX-745 / EQ-745 / TU-767 (6/28/13)
BankAmericard Cash Rewards - 10k, MAFCU Visa Rewards - 10k, Chase Freedom - 2500, Discover IT - 2000, Barclay Apple - 2000, AMEX BCE - 2000
Gardening as of 6/28/13
Established Member
sdotlow
Posts: 82
Registered: ‎05-06-2013
0

Re: First time buyer questions

APPROVED!

 

I'll post full details in the approved thread.

 

Got approved everywhere I applied.

 

Local Credit Union - 34K Loan @ 2.49% APR  - 748 Credit Score - Beacon auto (I've never had a vehicle).

 

Cap One - 33,750 Loan @ 3.4

 

The others wanted me to jump through hoops.  Ford Motor Credit wants a swing at offering me lower when I go to buy tomorrow evening.  We shall see if I can get them down to 0.9%!

 

Wish me luck!

 


Amex CS scores - EX-745 / EQ-745 / TU-767 (6/28/13)
BankAmericard Cash Rewards - 10k, MAFCU Visa Rewards - 10k, Chase Freedom - 2500, Discover IT - 2000, Barclay Apple - 2000, AMEX BCE - 2000
Gardening as of 6/28/13
Established Contributor
SamsungHDTV
Posts: 566
Registered: ‎10-25-2011
0

Re: First time buyer questions


sdotlow wrote:

APPROVED!

 

I'll post full details in the approved thread.

 

Got approved everywhere I applied.

 

Local Credit Union - 34K Loan @ 2.49% APR  - 748 Credit Score - Beacon auto (I've never had a vehicle).

 

Cap One - 33,750 Loan @ 3.4

 

The others wanted me to jump through hoops.  Ford Motor Credit wants a swing at offering me lower when I go to buy tomorrow evening.  We shall see if I can get them down to 0.9%!

 

Wish me luck!

 


Congrats! Didn't I call 2% give or take?

 

Food Motor Credit may be able to get you a better rate. If they do, dont be pen happy. Call your credit union and see if they can compete with Ford Motor Credit. My CU dropped my rate to beat Honda Financing by .05% and then offered an extra .40% reduction to start a checking and auto pay which I accepted. Not sure if your CU will have any wiggle room though, 2.49% is already great.

I'm a personal banker and do a lot of auto loans serving the Houston area.
I suggest first time car buyers to read the sticky guide in the auto loan section.
I try to check these forums often, but if I missed your post, please feel free to message me with a link to it.
Established Member
sdotlow
Posts: 82
Registered: ‎05-06-2013
0

Re: First time buyer questions

Well, I'll be picking the vehicle up tomorrow evening after the Credit Union is closed.  Credit union is allowing me to defer payments with no interest for 90 days, and I'm going to slam away principle during that time.  My only form of downpayment is the $2250 rebate I have.  I'd like to not be negative on it, and this should help me accomplish that.

 

I'm going to tell Ford they'll have to come down to 0.9% on 60 months.  My credit union loan is 2.5% @ 66 months.  That would make it worth my while.  I also know from how the salesperson sounded, they're VERY eager to get me to finance through them.   I gave them my credit info so I can avoid all of that when picking up the car.  They'll either give me the offer I want or I'll stick with my CU.  I have a loan calc on my phone so I can do whatever number crunching I need to, sitting in the finance office.

 

And yes, Samsung, you were right!  When I initially applied this morning online, it said "under review" and not accepted.  I quickly faxed in 2 W2's (since I get a lot of overtimer) and 4 pay stubs.  I was approved within the hour.

 

I'm beyond excited.  My first car.  I haven't been this happy in....possibly ever!

 

Thanks again to everyone here.  These forums are a wealth of information and I literally would not have gotten to this point without everyone here posting!

 

My next goal - figuring out what I need to do to get my hands on an AMEX!


Amex CS scores - EX-745 / EQ-745 / TU-767 (6/28/13)
BankAmericard Cash Rewards - 10k, MAFCU Visa Rewards - 10k, Chase Freedom - 2500, Discover IT - 2000, Barclay Apple - 2000, AMEX BCE - 2000
Gardening as of 6/28/13
Established Member
sdotlow
Posts: 82
Registered: ‎05-06-2013
0

Re: First time buyer questions

Samsung...you're the man!

 

I had to fax the purchase order to the CU in order for them to prep my check.  Went round and round with the finance guy.  I asked him to fax to CU, they never got it.  Asked to fax again, they never got it.  Asked him to email me, I never got it.  Called him, had him email with me on the phone, never got it.  Called him back, made sure to sound extremely annoyed on the phone, informed him I would need it faxed to me, and I would stand by the fax with him on the phone.  Got it.  Faxed to CU, and they didn't put the rebates in the purchase order.  Called him back, "Whoops!  Sorry about that!", yeaaah uh huh.  Had him fax me the updated copy.

 

WHILE faxing me the updated copy, he knew my APR with my CU.  Said he'd offer 2.0 - 2.25%.  Called back the CU to confirm they received purchase order, and asked my finance rep if she was willing to work on the rate because Ford wanted me to go with them for 2.0.  She said she could do 1.9% if I applied for a credit card, specifically a rewards card with a 9% variable, 10k limit and no annual fee.  I said sure, sign me up!

 

So not only did I get a better rate, I got an enormous boost to my credit line!

 

It's like Christmas in June!

 

Thanks again everyone here, and a special shout out to Samsung!  You're advice was amazing!


Amex CS scores - EX-745 / EQ-745 / TU-767 (6/28/13)
BankAmericard Cash Rewards - 10k, MAFCU Visa Rewards - 10k, Chase Freedom - 2500, Discover IT - 2000, Barclay Apple - 2000, AMEX BCE - 2000
Gardening as of 6/28/13

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