Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
Re: looking to finance a vehicle.
Hmmmm... I'm not so sure leasing a vehicle is worse as you have a lower monthly payment plus you are only financing the use of the car over 12-36 months, not the full purchase price of the vehicle. My auto lease actually improved my DTI for my mortgage. As if I financed, my monthly payment would have been $150 more plus I would have $35K total debt on my credit report versus the $18K I currently have for the lease. The other nice thing about a lease, is you have minimal maintenance as you don't have to worry about the crap that starts breaking at 100K miles...been there done that. So if you can't qualify for a mortgage with your credit, getting an auto loan would help your credit score. In fact, it was an auto loan after BK that really boosted my scores. As for qualifying for less house, as others said, that is income dependent. I make $96K a year and still got preapproved for more house ($360K) than I needed with a $536 per month lease payment on a luxury sedan. YMMV
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014