Is it really bad to buy a car before buying a home?

[bjl584]

As the title states. Here's my situation - Single, 31, no debt. Credit score is low 800's. My 2012 Jeep Wrangler is my only vehicle and has been paid off for a couple years. I have about $30k in the bank. My take home pay after deductions is roughly $2k/month. I would like to buy a used second vehicle around $9000 to use as a commuter. I was thinking of putting $3k down and finance the rest. The Jeep Wrangler is fun toy, but isn't the best commuter as mpg is horrible. I am also pre-approved for a mortgage and have been looking at a some houses. I'm not in a huge hurry to buy a home, but would love to be ready if the right one comes along. It would be my first home. My price range is $100k-$130k. How bad would financing a small $6k auto loan hurt my chances of getting a mortgage loan? I figured payments would be roughly $150/month. I would pay it off asap btw. Just wanted to hear some of your opinions. Thanks for any advice.

With your high credit score and a large down payment, buying a car before getting a house probably won't matter. You already have the pre-approval. The bank might not run your credit again if you buy a house. The only thing to consider is your own cash flow situation. Can you comfortable afford a car payment and a mortgage at the same time?

[Eagle]

As the title states. Here's my situation - Single, 31, no debt. Credit score is low 800's. My 2012 Jeep Wrangler is my only vehicle and has been paid off for a couple years. I have about $30k in the bank. My take home pay after deductions is roughly $2k/month. I would like to buy a used second vehicle around $9000 to use as a commuter. I was thinking of putting $3k down and finance the rest. The Jeep Wrangler is fun toy, but isn't the best commuter as mpg is horrible. I am also pre-approved for a mortgage and have been looking at a some houses. I'm not in a huge hurry to buy a home, but would love to be ready if the right one comes along. It would be my first home. My price range is $100k-$130k. How bad would financing a small $6k auto loan hurt my chances of getting a mortgage loan? I figured payments would be roughly $150/month. I would pay it off asap btw. Just wanted to hear some of your opinions. Thanks for any advice.

Thanks for the replies. I gross about $3800/month, but after all deductions (taxes, retirement, and healthcare) I take home about $2000/month. I have been thinking it's probably best to sell the Jeep and get a cheaper more practical car.

Yes sell the jeep and buy a Toyota Corola/Camry or a Honda Civic/Accord.

$2000 a month take home would worry me.

1. What would be the house payment on the 100k house? Or a 135k house?

Houses will always cost more than you think.


2. How much would you put as a down payment?

Right now where we live it's a sellers market. Our house is worth about 18.5% more today than what we paid for it in 2013.


3. Do you have furniture or appliances for a house? Would you get a roommate?

An empty house can be tempting to spend a lot to fill the gaps. A roommate would be another stream of income.

4. Do you have a significant other?

Marriage and kids can really change things up in many ways but especially financially...

[Petunia 100]

As the title states. Here's my situation - Single, 31, no debt. Credit score is low 800's. My 2012 Jeep Wrangler is my only vehicle and has been paid off for a couple years. I have about $30k in the bank. My take home pay after deductions is roughly $2k/month. I would like to buy a used second vehicle around $9000 to use as a commuter. I was thinking of putting $3k down and finance the rest. The Jeep Wrangler is fun toy, but isn't the best commuter as mpg is horrible. I am also pre-approved for a mortgage and have been looking at a some houses. I'm not in a huge hurry to buy a home, but would love to be ready if the right one comes along. It would be my first home. My price range is $100k-$130k. How bad would financing a small $6k auto loan hurt my chances of getting a mortgage loan? I figured payments would be roughly $150/month. I would pay it off asap btw. Just wanted to hear some of your opinions. Thanks for any advice.

Are you already working with a mortgage officer? Ask them.

[LivingAlmostLarge]

Move closer and keep jeep or just get a different car.

[clatoden99]

Definitely not! Property value almost always increases while vehicle value always decreases over time. A house is always the safer bet.

[TexasHusker]

Definitely not! Property value almost always increases while vehicle value always decreases over time. A house is always the safer bet.

The only problem with the house is, it can't get you to work and back!