Financial advice

[Furiex]

Evening everyone!

I have a quick question about a car loan and house loan

I'm looking to buy a new car, then in march I plan to purchase my parents house for 80k

My credit score is 794, I've never missed a payment on anything. Have no credit card debt.

I have a savings account with a decent pile in it, I won't disclose how much

I work at a local shop of 4 years now as a foreman making with not OT 2100$ a month

Also work a side job on a farm each month for 300-500 extra a month but I don't include that in my monthly income

So here's my problem, I want to buy a car, tomorrow infact, I currently drive a 1993 ford explorer that is about to implode and want something reliable. I plan on spending 22k for a really nice used truck.

Now I'm curious to the fact of if I buy the truck, will it then not allow me to get the house loan I desire. In other words, would it force me to wait to buy a vehicle after I buy a house? I know the smarter idea is to just buy the house then the car but my situation isn't setting up like that

I have no other bills right now besides the essentials.

So can anyone with some knowledge or life experience help me out here? ( I know turning to the Internet isn't the best)

Also for my past, I've had a 14k car loan paid off in full 7 months early. Also have 2 CCs totaling 9k between both with less than 50$ combined spent.

Also, the car loan would be around 375 a month, and house would be 575 with escrow included

Thanks for any input guys

[TITAN308]

Evening everyone!

I have a quick question about a car loan and house loan

I'm looking to buy a new car, then in march I plan to purchase my parents house for 80k

My credit score is 794, I've never missed a payment on anything. Have no credit card debt.

I have a savings account with a decent pile in it, I won't disclose how much

I work at a local shop of 4 years now as a foreman making with not OT 2100$ a month

Also work a side job on a farm each month for 300-500 extra a month but I don't include that in my monthly income

So here's my problem, I want to buy a car, tomorrow infact, I currently drive a 1993 ford explorer that is about to implode and want something reliable. I plan on spending 22k for a really nice used truck.

Now I'm curious to the fact of if I buy the truck, will it then not allow me to get the house loan I desire. In other words, would it force me to wait to buy a vehicle after I buy a house? I know the smarter idea is to just buy the house then the car but my situation isn't setting up like that

I have no other bills right now besides the essentials.

So can anyone with some knowledge or life experience help me out here? ( I know turning to the Internet isn't the best)

Also for my past, I've had a 14k car loan paid off in full 7 months early. Also have 2 CCs totaling 9k between both with less than 50$ combined spent.

Thanks for any input guys

$22k for something "reliable" is not reasonable. In my opinion it is an over expenditure.

I bought a 2006 Dodge Dakota Crew Cab with a 6 speed manual for $8,600 with 104,000 miles on it.

Just hit 144,000 miles and is going strong. The particular motor in this model (Magnum V-8) is not uncommon to get 300k miles without any major issues as long as you do maintenance.

The $80,000 on the home sounds somewhat reasonable. Probably won't require PMI on that amount so you are looking at around $350-400 a month for a 30 year loan @ around 4% which is middle road. Your credit may get you better. Our home was $124,000 and built brand new 5 years ago, credit was only 648 so our rate is 4.2%

We have to pay a PMI until it falls below 80% of its original value - so our $550 mortgage is more like $850 because of the extra insurance. Thankfully that will go away given enough time.

We also only did 3% down payment so it sounds like you have some money built up and can do better than that.

I would also recommend 15 years over 30 years.

[Rhyseh]

Talk to the bank and clear it all first.

22k seems perfectly reasonable for a car, particular these days when the main concern is electrical issues.

[TITAN308]

Talk to the bank and clear it all first.

22k seems perfectly reasonable for a car, particular these days when the main concern is electrical issues.

Used trucks are ridiculously priced in the USA. New ones even more so.

If he can afford it, more power to him, but I just want to argue the fact that getting something reliable does not require that amount of money.

- - - Updated - - -

Sorry, looks like PMI is based on down payment, not actual amount. Article seems to indicate that anything less than 20% down generally requires PMI. This makes sense with my original comment that our PMI will automatically cancel once our home is payed down to a minimum of 80% of value.

Keep this in mind that generally any mortgage calcs you look at will NOT include PMI and PMI can add hundreds of dollars to your actual mortgage loan.

http://michaelbluejay.com/house/pmi.html

[cubby]

Now I'm curious to the fact of if I buy the truck, will it then not allow me to get the house loan I desire. In other words, would it force me to wait to buy a vehicle after I buy a house? I know the smarter idea is to just buy the house then the car but my situation isn't setting up like that

If you are going to go through a bank for the house purchase, I would ABSOLUTELY WAIT on buying the car until after the house loan is approved. Anyone can get a car loan nowadays, so that's by far the easiest of the two loans to obtain. The mortgage loan, however, examines every part of your life, including debt-to-income ratio - and the new car loan will raise a huge red flag (for no good reason, but it will regardless).

I know you can taste the new car and can't wait to ditch the old beater, but wait four months, and then splurge with a barely used truck instead of a brand new one.

[ciggy]

might be really stupid and short sighted and I might be wrong, but can't you borrow 100k on the house, and use the overage to get the vehicle?

[draganid]

80k on a house????? WHERE??

[Luxxor]

Either buy a $2k car that you can just replace if it breaks down or buy a car that is new with a warranty...

[dacoolist]

Car lean needs to be paid off first before you can get the 100k loan on the house. You'll need 20% down if you want to not get eaten alive on the house btw. BigUP and gratz on the new car! ( great time of year to buy the car )

[Captain N]

Either buy a $2k car that you can just replace if it breaks down or buy a car that is new with a warranty...

You can buy used cars with a warranty as well -- I bought a 2012 Focus and bought the extended warranty for an extra $70/year. If anything fails I can take it back and they'll fix it for the $300 deductible. Already had to have the transmission replaced. This is a much better option that continuously replacing cars or buying a new one when you're only making $25,000/year.

[techgeek]

It may be worth speaking with an appropriate financial adviser to see how your debt to income and debt to credit ratios among other things may effect your mortgage and rates.

[Bushtuckrman]

Far out American homes are cheap as