Home/Car buying advice!!!

**greensooner** · 01-20-2013 07:31 PM

So I am planning on buying a home and a car this year, my question is is it preferable to buy one before the other and if so which one and why?

I am looking at buying a home in the $150K-$200K price range and have my sights set on a 2011 335i that will be $27K

My credit rating is a 728 (I didn't really work on it til the past couple years as I didn't have much before but it's going on the rise and with the housing market on the rise I feel I need to buy in the very near future)

I am going to put down around 15-20% down payment on the house and with my tax refund this year put down a good down payment on the car. I should get around 5K back in taxes this year

Am I being too aggressive with my purchase desires and I should get one or the other, or does this seem like a pretty good idea overall. I'm just wanting any bits of information or advice you guys have as this will be my first time buying a home. This will not be the home I live in the rest of my life but likely be there for 3-5 years.

thanks in advance for all responses, even troll responses I suppose

**barlowd** · 01-20-2013 07:34 PM

Don't be poor...build a mansion

**PokeJ** · 01-20-2013 07:37 PM

What's your monthly income?

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**Jenn and tonic** · 01-20-2013 07:38 PM

Based on my experience last year, you are being too aggressive.

I was told by my real estate agent and my mortgage guy to NOT buy a car before/during the process of buying the house, in fact that was the first thing my mortgage guy asked, whether I had bought a car recently. They look at your income and credit VERY closely and you are far more likely to be denied if part of your income is tied up in buying a car. It's getting a little more difficult as they are trying to conform to regulations in place since the disaster in 2008.

There could be mortgage guys here that know more than I do but I'm giving you advice based on my experience last year.

**KCRuf/Nek** · 01-20-2013 07:38 PM

Who here has to borrow 200K?

**greensooner** · 01-20-2013 07:38 PM

Originally Posted by PokeJ

What's your monthly income?

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Before taxes $5800
After taxes $4067

**greensooner** · 01-20-2013 07:39 PM

Originally Posted by KCRuf/Nek

Who here has to borrow 200K?

excellent point, maybe shouldn't have addressed the LT millionaires

**87sooner** · 01-20-2013 07:41 PM

buy the house...but get cheaper car....

**greensooner** · 01-20-2013 07:41 PM

Originally Posted by Jenn and tonic

Based on my experience last year, you are being too aggressive.

I was told by my real estate agent and my mortgage guy to NOT buy a car before/during the process of buying the house, in fact that was the first thing my mortgage guy asked, whether I had bought a car recently. They look at your income, tax, and credit VERY closely and you are far more likely to be denied if part of your income is tied up in buying a car. It's getting a little more difficult as they are trying to conform to regulations in place since the disaster in 2008.

There could be mortgage guys here that know more than I do but I'm giving you advice based on my experience last year.

I have also heard something similar to that, was just wondering about others experiences. Thanks, I suppose I'll have to research those regulations a bit to get a better grasp of this stuff. It's all new to me b/c I'm just now sinking my teeth into it

**greensooner** · 01-20-2013 07:42 PM

Originally Posted by 87sooner

buy the house...but get cheaper car....

why you say that? it is a nice car, I also know I don't need that kind of luxury car...it's more of a want than a need but I can't get it out of my mind and think about it all the time

**McRib** · 01-20-2013 07:44 PM

Originally Posted by greensooner

why you say that? it is a nice car, I also know I don't need that kind of luxury car...it's more of a want than a need but I can't get it out of my mind and think about it all the time

87 has a 98 Vette you can buy.

**Jenn and tonic** · 01-20-2013 07:45 PM

Originally Posted by greensooner

I have also heard something similar to that, was just wondering about others experiences. Thanks, I suppose I'll have to research those regulations a bit to get a better grasp of this stuff. It's all new to me b/c I'm just now sinking my teeth into it

I'd call around at some of the mortgage places in your area for questions; I did so before I chose who i went with and most (at least in my experience) are very willing to answer questions.

My parents are currently looking, it's definitely a buyer's market. Great time to buy a house.

**87sooner** · 01-20-2013 07:45 PM

Originally Posted by greensooner

why you say that? it is a nice car, I also know I don't need that kind of luxury car...it's more of a want than a need but I can't get it out of my mind and think about it all the time

find an older 330i with low miles ....prolly get it for half what you want to spend on the 335i...
the money you save will come in handy for home maintenance or furnishing it.......
cars are a waste of money...

**KCRuf/Nek** · 01-20-2013 07:47 PM

27K isn't exactly expensive for a car.

**greensooner** · 01-20-2013 07:47 PM

Originally Posted by Jenn and tonic

I'd call around at some of the mortgage places in your area for questions; I did so before I chose who i went with and most (at least in my experience) are very willing to answer questions.

My parents are currently looking, it's definitely a buyer's market. Great time to buy a house.

I am a member of the DoD and will most likely go with Navy Federal, they give tremendous rates to DoD members. But I will definitely be looking around and comparing with other lenders as well.

**tcrb** · 01-20-2013 07:48 PM

J&T is correct. Your mortgage loan is going to get scrutinized the most and the less debt you have when you apply, the better off you are. After you've closed on your house, you can go for the car. You can get a car loan on a smile and a handshake.

**drumhead23us** · 01-20-2013 07:49 PM

I wouldn't buy a car until after I bought the house if at all possible, like the poster above said. You'll need that credit number as high as you can get it, plus you'll want your debt/income ratio to be as favorable as possible. Also, apply the general rule of your house payment being no longer than 30% of your pay, factor in a car payment of roughly $400 for a car at that price range, depending on interest rate, of course, and see if you can afford both.

Edit: Just saw your post about monthly income. Money-wise you should be fine. The credit number situation might get a little wonky still, though.

**87sooner** · 01-20-2013 07:49 PM

Originally Posted by KCRuf/Nek

27K isn't exactly expensive for a car.

the less money you borrow the better...
and you can enjoy a used 330i just as much as a used 335i

**greensooner** · 01-20-2013 07:50 PM

Originally Posted by 87sooner

find an older 330i with low miles ....prolly get it for half what you want to spend on the 335i...
the money you save will come in handy for home maintenance or furnishing it.......
cars are a waste of money...

I get that, I currently live in a home I am renting and the house is pretty much furnished...I have accumulated quite a bit over the past several years. Maintenance on the home is definitely something I will want to be ready for but I also will be financially capable of dealing with most things that will happen at the house. I am also up for another raise in August so I am not too worried about that.

From my research though, 335i's are not maintenance heavy cars and not over expensive to maintain plus for an extra $1400 I can get an extended warranty up to 100,000 miles bumper to bumper

**Julz** · 01-20-2013 07:50 PM

Originally Posted by KCRuf/Nek

27K isn't exactly expensive for a car.

Not anymore it isn't. Average price for a decent 4 door is 25k and that's without bells and whistle

**greensooner** · 01-20-2013 07:52 PM

Originally Posted by tcrb

J&T is correct. Your mortgage loan is going to get scrutinized the most and the less debt you have when you apply, the better off you are. After you've closed on your house, you can go for the car. You can get a car loan on a smile and a handshake.

the only debt I have is student loan debt, I owe around $17K right now but I don't have to start paying on that until June

I imagine I will be paying around $350-$400/month on that

**drumhead23us** · 01-20-2013 07:53 PM

Originally Posted by greensooner

I get that, I currently live in a home I am renting and the house is pretty much furnished...I have accumulated quite a bit over the past several years. Maintenance on the home is definitely something I will want to be ready for but I also will be financially capable of dealing with most things that will happen at the house. I am also up for another raise in August so I am not too worried about that.

From my research though, 335i's are not maintenance heavy cars and not over expensive to maintain plus for an extra $1400 I can get an extended warranty up to 100,000 miles bumper to bumper

DoD is still giving out raises? You must be kicking ****!

**PokeJ** · 01-20-2013 07:53 PM

Originally Posted by greensooner

Before taxes $5800
After taxes $4300

Any other debt? You can afford about $1400 mo house payment

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**drumhead23us** · 01-20-2013 07:54 PM

Related question: if Green puts down the 15-20% on the house, he doesn't have to pay mortgage insurance, right? Just curious.

**greensooner** · 01-20-2013 07:55 PM

Originally Posted by drumhead23us

Related question: if Green puts down the 15-20% on the house, he doesn't have to pay mortgage insurance, right? Just curious.

this is correct, plus Navy Federal is really good about cutting down on my costs from the people I've talked to

**greensooner** · 01-20-2013 07:55 PM

Originally Posted by PokeJ

Any other debt? You can afford about $1400 mo house payment

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student loan debt, $17K...don't start paying on it til June (I did pay on some of that, knocked it down from $22K while in my masters degree)

**greensooner** · 01-20-2013 07:58 PM

Originally Posted by drumhead23us

DoD is still giving out raises? You must be kicking ****!

When I signed on it was guaranteed raises up to a certain point...after this raise I only get my annual ones

unless I move up another pay grade level (I won't be eligible for that until August when my 3 years is done)

**drumhead23us** · 01-20-2013 08:00 PM

Originally Posted by greensooner

this is correct, plus Navy Federal is really good about cutting down on my costs from the people I've talked to

Well, that knocks off like $100 or so bucks off of a mortgage right there. Being poor and not putting down more $$ really hurt.

If you have a membership to a CU that's almost ****uredly your best bet for loans. I don't know about mortgage as I actually went to BOK, but the car loans are awesome at the CU I'm a member of.

**xunil** · 01-20-2013 08:00 PM

Originally Posted by greensooner

So I am planning on buying a home and a car this year, my question is is it preferable to buy one before the other and if so which one and why?

I am looking at buying a home in the $150K-$200K price range and have my sights set on a 2011 335i that will be $27K

My credit rating is a 728 (I didn't really work on it til the past couple years as I didn't have much before but it's going on the rise and with the housing market on the rise I feel I need to buy in the very near future)

I am going to put down around 15-20% down payment on the house and with my tax refund this year put down a good down payment on the car. I should get around 5K back in taxes this year

Am I being too aggressive with my purchase desires and I should get one or the other, or does this seem like a pretty good idea overall. I'm just wanting any bits of information or advice you guys have as this will be my first time buying a home. This will not be the home I live in the rest of my life but likely be there for 3-5 years.

thanks in advance for all responses, even troll responses I suppose

A 2011 335i for 27K? Might want to double check that title history.

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**Jenn and tonic** · 01-20-2013 08:04 PM

Originally Posted by greensooner

student loan debt, $17K...don't start paying on it til June (I did pay on some of that, knocked it down from $22K while in my masters degree)

Be prepared for questions about that.... and about any past debt you've had. I mean I knew they'd ask questions and look pretty closely but I really had no idea the minutiae they asked me about, even given my good credit rating and clean history.

Also, one more reason to wait until after buying the house to buy a car: there are probably going to be little expenses that end up adding up to more than you thought it would...for instance, I love my house but I had to change all the flooring before I could move in (previous owners had dogs and didn't take care of the carpets...it was a mess). Just in case anything like that happens you probably want to have a cushion on your income that isn't tied up in debt/car payments.

**87sooner** · 01-20-2013 08:04 PM

Originally Posted by xunil

A 2011 335i for 27K? Might want to double check that title history.

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yeah....a quick scan of autotrader shows you have to drop back to a 2009 or older to get a low mileage one for that price...

**drumhead23us** · 01-20-2013 08:05 PM

27K for that model is really low.

**bushmaster06** · 01-20-2013 08:07 PM

Originally Posted by KCRuf/Nek

27K isn't exactly expensive for a car.

for a used car?

**87sooner** · 01-20-2013 08:08 PM

Originally Posted by bushmaster06

for a used car?

depends on the car

**Sinatra** · 01-20-2013 08:09 PM

After you buy the house and car, how much from each paycheck will you save for retirement?

**greensooner** · 01-20-2013 08:09 PM

Originally Posted by xunil

A 2011 335i for 27K? Might want to double check that title history.

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http://oklahomacity.craigslist.org/ctd/3515599699.html

**SpankyNek** · 01-20-2013 08:10 PM

need to put down 20% on your house to avoid pmi. You can have the pmi eliminated after 20% equity is reached, but, in general, it is not allowed to be removed in the first 5 years of the note (30 year). Definitely get the house first, as an extra point hurts way more over the duration of a house note than a car note.

If you have extra dough, pay off the car early if possible.

**87sooner** · 01-20-2013 08:13 PM

Originally Posted by greensooner

http://oklahomacity.craigslist.org/ctd/3515599699.html

that's a 328...not a 335

**greensooner** · 01-20-2013 08:14 PM

Originally Posted by SpankyNek

need to put down 20% on your house to avoid pmi. You can have the pmi eliminated after 20% equity is reached, but, in general, it is not allowed to be removed in the first 5 years of the note (30 year). Definitely get the house first, as an extra point hurts way more over the duration of a house note than a car note.

If you have extra dough, pay off the car early if possible.

thanks for the response, so here's the perk I get from staying in state after I graduated college...the Aerospace Tax Credit...at the end of the year I get all the money I paid into state taxes back as a refund...the gist of it is I will basically get that for 9-10 years depending upon when I use up the maximum total return of $25K

b/c of that I can make pretty good sized lump sum payments each year to house/car

**greensooner** · 01-20-2013 08:15 PM

Originally Posted by 87sooner

that's a 328...not a 335

yes you're right, I'll find the other link for the 335i...my bad

I might have them confused and the 335i was $32,500

**bushmaster06** · 01-20-2013 08:23 PM

Originally Posted by greensooner

thanks for the response, so here's the perk I get from staying in state after I graduated college...the Aerospace Tax Credit...at the end of the year I get all the money I paid into state taxes back as a refund...the gist of it is I will basically get that for 9-10 years depending upon when I use up the maximum total return of $25K

b/c of that I can make pretty good sized lump sum payments each year to house/car

that tax credit seems to be good for 5 years, up to $5,000/year.

**Sooners2007** · 01-20-2013 08:37 PM

House first... It will take about 6-8 months to recoup the credit hit from the car. Plus it just adds extra DTI to your scenario.

Yes I'm a mortgage banker.

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**tcrb** · 01-20-2013 08:39 PM

Originally Posted by Sooners2007

House first... It will take about 6-8 months to recoup the credit hit from the car. Plus it just adds extra DTI to your scenario.

Yes I'm a mortgage banker.

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/thread

**Shooterms** · 01-20-2013 08:44 PM

Home loans are harder to get. Get the home loan first. Car loans are easy.

**greensooner** · 01-20-2013 08:52 PM

Originally Posted by bushmaster06

that tax credit seems to be good for 5 years, up to $5,000/year.

it carries over any remainder for up to 5 years for each of the 5 individual years where the $5K/year is not used

**bJ0** · 01-20-2013 08:55 PM

get the house first. there are many, many unforeseen expenses when buying what i ****ume to be your first house.

**greensooner** · 01-20-2013 09:07 PM

thanks for the responses guys (and girls), much appreciated!!!

**Soonerp** · 01-20-2013 09:11 PM

Don't touch your credit until the home deal is finalized. Too many hoops. Talk to your mortgage person and follow their advice.

**ab5sr** · 01-20-2013 09:18 PM

Doesn't matter really, but I'd get the house first Both are secured loans so the order won't make much difference; you're not going to get dinged by the guy who buys the paper on either, so I wouldn't worry about it. Your credit rating is good and you're putting down a decent amount on the house, so enjoy.