HOW LONG AFTER PURCHASING A HOME CAN ONE FINANCE A CAR?

My father as well as I desperately need the brand new vehicle, though we have been in the center of purchasing the initial home. I need to know how prolonged we have to wait for prior to being means to financial the car. Thank we for your help!

{ 2 comments… read them below or add one }

Dr. Deth July 8, 2010 at 11:02 am

wait until after you’re done with the house purchase – think more about a used car – you’ll have enough added costs with the house

Ruth51 July 8, 2010 at 11:57 am

It is, of course, advisable to finish the transaction with the home first, and lenders love to see one year of payments made on time.

However, depending upon your income and credit rating, there may be no need to wait for any length of time after the closing of the house.

Credit ratings may be obtained free once a year from all three of the credit agencies—Equifax, TransUnion and Experian. You can request all three of them online at:

https://www.annualcreditreport.com

The person handling your mortgage loan probably already has them and you may request a copy. They also may have your credit score, which is a number indicating how good or bad of a risk you are for a loan. Ask your mortgage loan officer if she has that also. Otherwise, you may purchase your score from each of the agencies at:

Equifax – http://www.equifax.com
Experian – http://www.experian.com
TransUnion – http://www.transunion.com

Personally, I pay $9.49 a month through Costco to have continual access to my credit records online at any time, and also monitor for identity theft, as well as other services. It is well worth it for the peace of mind.

A banker will use a standardized formula for determining if you can qualify for a car loan. It used to be that all of your loan payments could not exceed 33% of your income. That percentage may have changed. Ask your banker what the formula is currently, and he can help you can figure out if an additional loan is within your salary.

Remember, banks are in business to make money on loans, so if your credit ratings and credit score are good, your banker should be able to tell you exactly how much you would qualify for with a car loan. Pre-qualifying also helps you to be able to shop within your means.

Additionally, credit unions are usually easier to get a loan from rather than from a bank.

Good Luck and Blessings!

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