Hello everyone, this forum has been really helpful for me during my credit card apps and approvals. But this inquiry is for myself and my husband. I am not sure how to explain this. But how do we go about this? I need your advice. We are thinking of buying a Ford Platinum F150 that has 59k road miles and well taken care of from a private Seller (we know the seller because they’re close relative) for $31k. My husband can get an auto-loan from credit union at 1.59% rate for up to 36 months auto-loan according to the bank manager, and they will pull equifax. My husband has FICO score of 765. Has 9.5 yrs AAOA. $98k annual income. But we don’t know how will that work since we want to buy from individual private seller. We know that we cannot get a personal loan at that low rate and there is no way my husband will get a personal loan- he doesn’t really believe he needs that. By the way we have $13k-$16k we can pay and loan the rest. About him- The last and only loan he had had been paid off 18 yrs ago and that was for a mortgage. He never had any loan since then and also had never took a car loan ever in his life. We always PIF our cards every month. Also another thing to mention is that we may purchase another house in 2-3 years so I’m not sure if getting an auto loan may affect our future plan.
About me- I am just a housemaker and I still don’t have FICO score because my AAOA is only 5 months, my Equifax is 723 according to CK (which I know is unimportant when considering a loan). I am really the one who is convincing my husband to get that truck since we have agreed on getting a bigger vehicle that has more protection when on the road (we have a 3 month old daughter) and can tow a bigger boat. And so we want to know what other options we possibly have.
Even if we miss this F150 we would still be getting similar vehicle in that price range or lower and maybe from another private seller. I just want to know our options. Thanks in advance.
As long as the vehicle LTV ratio is fine the bank will secure the loan with the vehicle. He has the credit score and the income. %1.59 is a great 3 year loan rate. If you have to pay a little to get the loan in the correct value you seem to have enough saved to do that. That will not affect the house loan. It will add a good trade line for your score. As long as your income is enough to cover whatever house payment and car payment and your debt to Income ratio is within parameters for a loan ( usually 36% to 43% or less ) don’t worry about the house in the future. Just don’t apply for anything within 6 months of getting a house until house closing in that future. You did what you were supposed to and got a preapproval from whatever bank. You are then golden. Go hunt for the vehicle that fits your needs.
Most CU's and local banks will allow you to purchase from a private seller. I think one of the big 3 CU's mentioned here (Penfed, NFCU, DCU) will send you a draft that you can write directly to the private seller as well but I may be mistaken. Another option is Lightstream which is an unsecured loan with decent rates, Im not familiar with them as much but I think the process is pretty simple...do everything online and they approve you for a certain amount and ACH the funds to your account for you to purchase the vehicle.