new car or wait??

[Anonymous]

Plan on applying for a home loan in 6 - 8 months my peoples say its ok long as I dont let them run 10 inquirys also the new car will be cheaper then the 1 I have now so I can lower my dti any suggestions

[Anonymous]

Yes, get a pre-approval from a CU, or your local bank, instead of letting the dealer arrange the financing.

[Anonymous]

Sounds like a plan @norm thanks

[Anonymous]

I sedond the getting approved first and do not listen when the dealer says they can finance you for cheaper. Lesson learned when I did that and got hit with 9 inquires and no cheaper rate :/ 

[MarineVietVet]

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@Anonymous wrote:
Plan on applying for a home loan in 6 - 8 months my peoples say its ok long as I dont let them run 10 inquirys also the new car will be cheaper then the 1 I have now so I can lower my dti any suggestions

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May I ask what terms are involved? Will it be a 36 or 48 month note? 60? Even longer?

[KoolDev]

I just got my DW another vehicle.  Just becareful that you dont hurt your debt to income ratio by getting a car.   And they are right get approval from a CU before you go and dont let the dealer do anything as car as the lending goes.  Best bet is, if you dont have to get one right now, dont.

[Anonymous]

Prob a 60 term , um its not that important just tryna beat a lop sided situation

[superdad]

I think your looking at this wrong.  Adding a car loan to your credit profile will RAISE your debit to income ratio.  Look at it this way,  lets say you can afford 1200/month home loan,  you take out a car loan for 300/month.  You just droped what you can afford for a monthly morgage by 300.  So instead of 1200/month you now can only afford 900/month. That could be the different of a 150k to 140k loan.

Alot of people will buy a home FIRST then before the ink dries they run out and get a new car.

[Anonymous]

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@superdad wrote:

I think your looking at this wrong.  Adding a car loan to your credit profile will RAISE your debit to income ratio.  Look at it this way,  lets say you can afford 1200/month home loan,  you take out a car loan for 300/month.  You just droped what you can afford for a monthly morgage by 300.  So instead of 1200/month you now can only afford 900/month. That could be the different of a 150k to 140k loan.

Alot of people will buy a home FIRST then before the ink dries they run out and get a new car.

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I think you're missing that the OP said they already have a car, but they want a less expensive one, I.E., they are going to trade down. That should actually improve their Debt to Income ratio.

[Anonymous]

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@Anonymous wrote:
Prob a 60 term , um its not that important just tryna beat a lop sided situation

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Just don't let the dealer screw you over on the trade in value. Get online estimates as well as a couple of 'real' estimates before going to the dealer. When I traded mine in a couple months back, the dealer offered me HALF the KBB estimated trade-in value. They gave me 3500 on the trade in, and two days later it was listed their site for 12K...