@AtmyOffice wrote:
Hi guys!
My car is getting up there in the miles and starting to have some age related issues (135,000 miles). I should still get a good 4K back in a trade in (I am lowballing it since KBB says the trade in value in its present condition is more like 5500). I also have up to 8K cash I can put down. When I paid it off in January I planned to keep it for at least another year but I have spent $500+ in the last week and I have another visit pending this weekend.
I am looking for a small crossover - maybe a Jeep Compass - around 22K msrp.
I got approved for a home loan back in March.
My FICO scores are all around 660 but they might have gone down a bit since and if the mortgage tradeline has been included in my CR. Or UP*
I make $5000 a month. Will a high downpayment amount guarantee that I get approved for a loan? YES*
Thanks in advance.
* No one here can guarantee anything.
Cash down will trend to ensure a loan. it may mean you get a loan you would not have gotten, or you get a rate you would not have gotten, or a combination of the two.
Before you do buy new, talk to your mechanic and see what all they say you car may or may not need. If you spend 1,000 but get 6 months out of the current car, you may be better off keeping it and saving a larger DP.-Heck maybe even pay your new car off in cash on purchase.
One caveat: too much cash down could actually cause you not to get financed. As some lenders have minimum amounts that they finance, still its better to have the money to put down and not need it then not have enough. If you did get a loan and had to hold back on cash down, as long as there was no prepayment penalty you can easily make a large first payment.
