U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 04-11-2016, 12:15 AM
 
18 posts, read 25,207 times
Reputation: 20

Advertisements

Back in January my car was totaled through no fault of my own. At the time, I was just starting my search for a home and decided not to buy a car until after the house. In February, I found a home and went through the process-offer, home inspection, contract, appraisal, underwriting, etc. I am now a few weeks away from closing and I have been suffering for 3 months with no vehicle. I literally want to buy a car the weekend after closing, and most likely I will have to finance one. I have already decided how much I feel comfortable spending, I just don't want to do anything to mess up so I'm trying to hold on for a few more weeks. I feel like once I close, this process is all over and I can buy what I want. Is this true? Will it be generally fine to buy a car immediately after closing? Thanks.
Reply With Quote Quick reply to this message

 
Old 04-11-2016, 03:05 AM
 
Location: Phoenix AZ
5,813 posts, read 9,830,836 times
Reputation: 8810
Yup, you should be totally fine to buy after closing..
Reply With Quote Quick reply to this message
 
Old 04-11-2016, 05:42 AM
 
Location: MID ATLANTIC
7,384 posts, read 16,784,317 times
Reputation: 7652
You could literally walk out of closing and go straight to buying a car, without any fear of blow back.

The only danger being you don't over commit yourself. You know your comfort level and how much debt to take on. But you can ask you lender what your final ratios were ("out of curiousity"- need not share why you ask). Assuming all income is being counted, the higher you are in the 40's, the more you should be concerned about your financial health.

Other places to "find" money, review your withholdings with a tax professional, you may be able to squeeze more money from your paycheck by adjusting exemptions, but definitely arm yourself with an amortization schedule (for projected interest) and your annual tax bill to do these calculations. Use any of the many amortization schedules available on the web, but don't forget the first year will not have 12 full months, so estimate accordingly..
Reply With Quote Quick reply to this message
 
Old 04-11-2016, 01:30 PM
 
249 posts, read 201,832 times
Reputation: 565
I bought a car about 45 minutes after closing.
Reply With Quote Quick reply to this message
 
Old 04-12-2016, 08:45 AM
 
7,988 posts, read 7,823,985 times
Reputation: 10958
While, to be safe, I would wait til final docs are signed, my mortgage broker told me I was free to buy and spend just as soon as the final credit check was done 2-3 days before closing.


Granted, I wouldn't do that just in case something delays closing, but my take was once they do your final credit pull, you are in the clear.
Reply With Quote Quick reply to this message
 
Old 04-12-2016, 09:33 AM
 
27,900 posts, read 65,304,503 times
Reputation: 17347
The advice of your loan officer, and the specific language OF THE MORTGAGE YOU SIGN will be the final authority -- and even THEN there are circumstances where a lender can go to court and say "the borrower was running a SCAM on US!"

I would not stress out about this, as it is absolutely understandable that the OP needs a new car, but the law is generally biased for LENDERS and if the OP can wait until the lender accepts the first payment from the OP the odds of the lenders calling up and screaming "WHAT do you think you are getting away with!" drops off considerably...


The concept of even a legally "flawed" mortgage document still allowing the lender to get what they agreed to is something that many "show me the document" type borrowers foolishly did not anticipate -- Legal Mortgage Vs. Equitable Mortgage | Finance - Zacks

Now, the OP has said nothing about "barely qualifying for the loan" or any other red flag, so I mostly agree that they absolutely COULD head right to a car dealer after closing, but the more prudent thing to do is, like they suggest, buy a car the WEEKEND after closing. From a practical matter, the more that time that elapses the less likely it is to set off "alarm bells" in the current paranoid lending environment... TILA-RESPA Integrated Disclosure rule implementation > Consumer Financial Protection Bureau
Reply With Quote Quick reply to this message
 
Old 04-12-2016, 09:41 AM
 
249 posts, read 201,832 times
Reputation: 565
Quote:
Originally Posted by BostonMike7 View Post
While, to be safe, I would wait til final docs are signed, my mortgage broker told me I was free to buy and spend just as soon as the final credit check was done 2-3 days before closing.


Granted, I wouldn't do that just in case something delays closing, but my take was once they do your final credit pull, you are in the clear.

I believe you sign a document at closing saying nothing has changed since then. You would have to lie on that document.
Reply With Quote Quick reply to this message
 
Old 07-26-2016, 01:32 PM
 
1 posts, read 8,332 times
Reputation: 10
I'm kind of in a bind. I really need another vehicle due to my dodge nitro needing a new motor. Meanwhile I have a Nissan Sentra 1997 with no AC and living in Texas, and my wife will start working soon and needs that extra vehicle. I'm about to start the process to buy a house but also need a new car asap. So the day I close my fha home loan, can I go straight to the dealer and get a new car with out the house loan appearing on it? The house I qualified for was based on 40 hours a week. But my normal is 60 hours(20 hours OT) plus where I work in the medical field as an LVN. So I can easily pay off a house loan and a new car loan. But lenders will only base off my 40hrs and a house loan I will have. So my question is. Is it possible to get a car loan that same day without the home loan appearing on my credit report right after house closing and signing all documents without any future issues as far as getting into my new home?
Reply With Quote Quick reply to this message
 
Old 07-26-2016, 01:51 PM
 
27,900 posts, read 65,304,503 times
Reputation: 17347
Default I appreciate the situation you are in, but the answer is not really so simple...

Quote:
Originally Posted by Rocky1234 View Post
I'm kind of in a bind. I really need another vehicle due to my dodge nitro needing a new motor. Meanwhile I have a Nissan Sentra 1997 with no AC and living in Texas, and my wife will start working soon and needs that extra vehicle. I'm about to start the process to buy a house but also need a new car asap. So the day I close my fha home loan, can I go straight to the dealer and get a new car with out the house loan appearing on it? The house I qualified for was based on 40 hours a week. But my normal is 60 hours(20 hours OT) plus where I work in the medical field as an LVN. So I can easily pay off a house loan and a new car loan. But lenders will only base off my 40hrs and a house loan I will have. So my question is. Is it possible to get a car loan that same day without the home loan appearing on my credit report right after house closing and signing all documents without any future issues as far as getting into my new home?

I am going to suggest you read this article -- What You Need To Know About Zero-Percent Car Loans | Edmunds.com Though the focus is on "what FICO score is needed to get a 0% car loan", the fact is tht the SYSTEMS that car dealers are tied into through their relationships with the factory and third party lenders enables them to get a "real time" update on your credit score. That means that the lending systems will know that you have applied for and been approved for the mortgage and realistically any decisions made by those computerized systems will reflect that information.

Maybe a decade or so ago there were still car dealers that would fax a loan application to some third party and things might not show up so quickly but that era has passed.

That said, if you can qualify for a nice inexpensive car it really won't matter if you do the loan the same day as you close on your new house or days / weeks later. So I guess that might be some good news...

BTW, I do recommend that folks who are shopping for a car give serious consideration to the option of financing it through a credit union. 6 reasons to get a credit union car loan The structure of most credit unions is such that they have lower costs than other kinds of lenders and generally are more flexible when it comes to lenghtier loans. Using them for a loan may make it possible to get rebates / cash incentives from the dealer or manufacturer. New Car Incentives and Rebates
Reply With Quote Quick reply to this message
 
Old 07-26-2016, 05:48 PM
 
Location: MID ATLANTIC
7,384 posts, read 16,784,317 times
Reputation: 7652
Quote:
Originally Posted by Rocky1234 View Post
I'm kind of in a bind. I really need another vehicle due to my dodge nitro needing a new motor. Meanwhile I have a Nissan Sentra 1997 with no AC and living in Texas, and my wife will start working soon and needs that extra vehicle. I'm about to start the process to buy a house but also need a new car asap. So the day I close my fha home loan, can I go straight to the dealer and get a new car with out the house loan appearing on it? The house I qualified for was based on 40 hours a week. But my normal is 60 hours(20 hours OT) plus where I work in the medical field as an LVN. So I can easily pay off a house loan and a new car loan. But lenders will only base off my 40hrs and a house loan I will have. So my question is. Is it possible to get a car loan that same day without the home loan appearing on my credit report right after house closing and signing all documents without any future issues as far as getting into my new home?
Yes. Once you go to closing, the home is yours. No underwriters are going to be popping out of trees or under the bed. Consumer credit (car loans, signature loans, credit cards) have far more liberal qualifying guidelines. This is the reason why the mantra is don't buy a car before buying a house. Consumer loans use year to date income, so be sure of your employment dates. And they will use you OT.

Hang in there! Almost home!
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2017, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32 - Top