| Mortgage or auto loan first? |
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derxian
New Poster
Cash: $ 0.45
Posts: 2
Joined: 03 Apr 2005
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| Mortgage or auto loan first? |
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Hi! After 2.5 years of being a foreign graduate student and teaching assistant with a stipend of 15000/yr. I am going to be a medical resident, with a stipend of 42000/year. My FICO score is 757, and I have no debt, and little savings. I am going to buy a certified used car(17000) and a condo(80000). Which should I do first? I want to do both without a down payment as soon as I can. Which loan should I apply for first?I am thinking of applying for both within 15 days of arrivving there.I don't want to pay rent when I can afford the closing costs, and am certain to be making this much at the same place for 3-4 years.My loan officer thinks I should apply for auto first as auto is more difficult to get. However, I think I should apply for mortgage first as it's the more important loan. I am going to apply for 5/1 ARM as I will move out before 5 years.
Thank you all so much
Best,
Dee
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Sun Apr 03, 2005 9:29 am |
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Rolo
Yo' Daddy
Cash: $ 309.70
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Location: Colorado/Florida
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Methinks your loan officer sucks or has a conflict of interest (no pun intended).
Apply for the mortgage first: one of the requirements of a mortgage is a good debt-to-income ratio and you are correct: the mortgage is more important. Only after you close on the condo, apply for a car loan. Reason: you will have a credit check with a new account established; a bunch of credit checks with no new accounts is detrimental to your credit score, which, yours is superb. Anything over 680 is excellent.
Since the condo is so cheap, consider keeping the property after you move to rent it out. See what comparable places cost a renter to rent to see if you can have positive cash flow; this will have an impact on the type of mortgage you choose (fixed or adjustable).
"Expect me when you see me."
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Sun Apr 03, 2005 1:28 pm |
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Rolo
Yo' Daddy
Cash: $ 309.70
Posts: 1551
Joined: 13 Mar 2005
Location: Colorado/Florida
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Oh, I didn't mention that I did exactly what you are doing now. Last month I bought another house and I intentionally held off buying another car until the mortgage was a done deal. Yesterday I got the car. Had I gotten the car first, I would not have been able to get the house I wanted.
"Expect me when you see me."
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Sun Apr 03, 2005 1:56 pm |
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derxian
New Poster
Cash: $ 0.45
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Thank you Rolo! I am glad that someone has been through all this since none of the four personal finance books I read mentioned this kind of conflict.
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Sun Apr 03, 2005 11:31 pm |
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Rolo
Yo' Daddy
Cash: $ 309.70
Posts: 1551
Joined: 13 Mar 2005
Location: Colorado/Florida
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Yeah, and after you move into your condo, your FICO score will still be killer and you will be able to get a killer car loan.
Take a turbo PT for a test drive. 
"Expect me when you see me."
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Mon Apr 04, 2005 3:10 am |
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xboxundone
Senior Member
Cash: $ 67.83
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quote:
Originally posted by sarah
Mortgage first. Do you really need to ask? There is great flexibility regarding obtaining funding for a vehicle. There is much less flexibility with a mortgage, with respect to your credit score.
Yes this is so true go for the bigger purchase first! 
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Mon Apr 04, 2005 1:51 pm |
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engineearth
New Member
Cash: $ 0.70
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Joined: 09 Apr 2005
Location: atlanta,GA
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mortgage
Dont forget, people with homes are 10x more likely to get a loan.
James
Admin@EngineEarth.com
Atlanta, GA
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Sat Apr 09, 2005 2:37 pm |
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