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Stupid question regarding applying for mortgages
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Suzanne
May the Force Be With You!
Member since 5/05 2083 total posts
Name:
Suzanne
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Stupid question regarding applying for mortgages
Do you get better percentages if you don't have other loans out there, such as car loans?
We currently only have 1 car loan and are thinking about buying another car which will mean another loan. Will this affect us when we apply for mortgages?
I have no idea how any of this works. Thanks.
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Posted 11/21/05 12:45 PM  |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Stupid question regarding applying for mortgages
Posted by Suzanne
Do you get better percentages if you don't have other loans out there, such as car loans?
We currently only have 1 car loan and are thinking about buying another car which will mean another loan. Will this affect us when we apply for mortgages?
I have no idea how any of this works. Thanks.
Avoid the second car purchase until you are closed on your mortgage. Don't even do it when you are approved... because even if you are approved... they can still conditionally check your credit for new debt.
If the 2nd car is not life and death necessary... wait till after you own the house.
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| Posted 11/21/05 12:52 PM |
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Suzanne
May the Force Be With You!
Member since 5/05 2083 total posts
Name:
Suzanne
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Re: Stupid question regarding applying for mortgages
Posted by DjPiLL
Posted by Suzanne
Do you get better percentages if you don't have other loans out there, such as car loans?
We currently only have 1 car loan and are thinking about buying another car which will mean another loan. Will this affect us when we apply for mortgages?
I have no idea how any of this works. Thanks.
Avoid the second car purchase until you are closed on your mortgage. Don't even do it when you are approved... because even if you are approved... they can still conditionally check your credit for new debt.
If the 2nd car is not life and death necessary... wait till after you own the house.
What if we don't plan on buying a house for another 6 months or so?
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| Posted 11/21/05 1:05 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Stupid question regarding applying for mortgages
Posted by Suzanne
What if we don't plan on buying a house for another 6 months or so?
I would still wait if you can. A second car will seriously affect your debt to income ratio. It may not change the interest rate you will get. But it will most definitely lower the amount of money you can borrow quite a bit.
Buy a beater car and pay cash if you plan on buying a house within a year or so.
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| Posted 11/21/05 1:30 PM |
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Bebalina
<3
Member since 6/05 2922 total posts
Name:
N
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Re: Stupid question regarding applying for mortgages
pill is right
dh and i had a car loan in order to get a lower interest rate we had to pay off our car loan to avoid .75% more in interest rates.
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| Posted 11/21/05 4:26 PM |
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Suzanne
May the Force Be With You!
Member since 5/05 2083 total posts
Name:
Suzanne
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Re: Stupid question regarding applying for mortgages
Thanks everyone for your help and advice.
DH decided that we really need the car (his is not going to last much longer and we are moving to NC and should have reliable cars). We put a little more down on it than we probably would have if we were not going to be applying for mortgages in the next 6 months. Hope we don't have too much trouble!
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| Posted 11/21/05 7:02 PM |
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