I currently live an hour from work and would like to move closer. The market where I currently live is really hot, whereas the market closer to work is much more tepid (due to school quality for the most part). I need to not only do some research on whether I would have a hard time selling down the road in this new area, but also want to look for a house that is in relatively good shape (most are 40+ years old and some haven't been redone in ages).
At the same time, my car is racking up the miles and I have already had an unexpected major engine failure that was covered under extended warranty. I'd rather not hang onto that vehicle beyond the warranty expiration in case more goes wrong. I would look to trade the car in (assume it's worth $10k) and put another $10k down on a roughly $40k vehicle that is likely coming out around year-end.
My debt/income is fairly low (27%), and I would expect my new housing payment to be comparable, if not lower. I would also sell the current house and pay off the mortgage & HELOC (there would be a good amount of leftover positive equity I could use as a down payment, in addition to ample savings).
However, never having sold and bought a house simultaneously, I am not sure if a lender assumes you will sell your current house or underwrites you as if you have two mortgages. I had planned to buy the house before the car, but given I am now less sure when or if I will find a suitable house, I might have to go for the car first. Should I be worried about qualifying for a mortgage if I buy the car first?
Yes, FICO score is well above 760 and there are plenty of assets (including enough cash to make half of a conventional down payment in the price range I would seek).