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Investing in a car, hoping it will appreciate, is a fools errand. If you want a drag racer/show car, I get it, but don't expect to ever see your money back.
Ruined? You're going to quit like that? Its a setback, not a ruination. Crummy attitude.
Quote:
Originally Posted by petch751
hmm, I got my mortgage after the crash and they required 3 months expenses. that's right, I got the mortgage after the crash, after they would lend anyone money, when even my dog could be called and asset.
Either way my point is if you buy a home without having an emergency fund, you have no business getting a mortgage. My second response is because if there is no emergency money and if you lose your job then you won't be able to pay the mortgage payment. I thought you were smarter than that.. me having to explain it? Guess not.
But go ahead Lowexpectations, encourage OP to buy a liability. Go ahead and encourage him to set himself up for failure.
He is not encouraging setting me up for failure. I thought you were smarter then that. please bold where i stated that i will have a house Immediately after school? I would still need to pay off school loans and save up money for down payment ect, saving is a smart move and thats the road i am heading down now, i was getting all loans for credit and car purposes.
Also i know many families doing just fine without an emergency fund and also many people save for their emergency fund while living in the house they got a mortgage on.
He is not encouraging setting me up for failure. I thought you were smarter then that. please bold where i stated that i will have a house Immediately after school? I would still need to pay off school loans and save up money for down payment ect, saving is a smart move and thats the road i am heading down now, i was getting all loans for credit and car purposes.
Also i know many families doing just fine without an emergency fund and also many people save for their emergency fund while living in the house they got a mortgage on.
Aaah, you have to work full time.. poor you. Welcome to the real world.
Quote:
Originally Posted by petch751
ah huh, ok then. Have a nice life. lol
LOL im sorry u consider the real world a bad thing. poor you. Some people know how to manage their money, so life doesnt suck so much. I dont mind working full time, its just gives me less time to work on the car. But i will have a nice life i just got approved for a 4000$ loan now i just need to pay that off, get another 4k loan and im back on the road
OP, why do you want two cars when you expect to be going into significant student loan debt? In terms of credit, you should be fine - an 800+ score AND a revolving tradeline (assuming you are using credit cards responsibly) and an installment loan - stellar credit - the mortgage underwriters will be impressed by this. By the time your paid off auto loan rolls off your record you will have student loan payment history as an installment debt.
The bigger concern for you should be debt to income. In order to qualify for a home loan, you need to have all your payments, when added together, remain a modest percent of your monthly income. If your debt obligations, combining both pre-existing and the proposed house payment, are too heavy relative to your earnings, your mortgage WILL be DENIED even if your credit is stellar. They want to see both willingness AND ability to pay.
I would highly recommend taking the money you intend to spend on this car hobby and putting it towards school to reduce the amount of student loans you're taking out. Even if it's only enough to pay for 1 or 2 semesters without loans, that cuts down on the amount of debt you will have and thus makes it MORE likely, not less, that you will qualify for a home loan later, because your debt to income ratio (DTI) will be lower - and your credit is already top-notch.
Also, your aversion to working full-time needs to be managed - because if you have breaks in your work history, this can also cause a mortgage denial. After the housing bubble popped in 2007-2008, the rules have been rigid and they are not going to "make an exception" for you. Be warned, and be prepared.
I could be mistaken, but honestly, no offense intended, it sounds to me like your problem is that the idea of waiting a few years to get your finances in order before engaging in expensive hobbies is giving you a FOMO (Fear of Missing Out.) But to this I ask, what is a bigger thing to miss out on - your side hobby or your home?
wrong, I will see my money back, i have done plenty cars and have even made money off of newer cars that have horrendous resale value like the chrysler 300. The thing is, my cars value has already depreciated. I also got my car through a car lot with 20% interest for 8k, i payed that loan off within 2 years on my 5 year term. My car still bluebooks at 6k and i already put 50k within that 2 years. I did more of a restore then completely custom. I just respray the car, witch i did myself. And fitted the car with a simple sound system, and upgraded the brakes, and suspension. Everything was done mild. And the last time this swap was done the car sold for 25k
Yeah my plans were ruined, you would feel the same way if you got a loan for 8k, payed off a car. Then wanted another 8k loan and got denied, but i understand that there was collateral on my car loan. You have a crummy attitude. Now i have to work full time and spend less time on the car when i try to finish all this befor school starts
Also noone is hoping for the car to appreciate in value, I AM not selling this car. This is the car i have wanted since it came out in 2001. So if i dont make my money back i do not care cause that is not what i am building the car for.
So you restore/repair/refurbish used cars. That's different and if your handy, which it sounds like you are, you can do ok making money at that. I was speaking more to guys that sink beaucoup bucks into their dream custom ride and are disappointed when the market doesn't support what they've built it up to be worth in their minds.
You give up to easily. If your plans were ruined then you need to come up with a new plan.
You may just need to delay your big want for awhile.
There are probably other people / CU's who would be foolish enough to loan you the money.
Give up too easily? well i didnt give up comepletely, that is why i decided to take out smaller loans and start like that. Like i said, i was just mad at the fact that i didnt know that i needed a certain amount of income to qualify for the loan. And yes i am certainly in the postion to have to delay things. But i cannot completely delay this project cause a reliable daily driver is more of a necessity then a want.
Quote:
Originally Posted by ncole1
OP, why do you want two cars when you expect to be going into significant student loan debt? In terms of credit, you should be fine - an 800+ score AND a revolving tradeline (assuming you are using credit cards responsibly) and an installment loan - stellar credit - the mortgage underwriters will be impressed by this. By the time your paid off auto loan rolls off your record you will have student loan payment history as an installment debt.
The bigger concern for you should be debt to income. In order to qualify for a home loan, you need to have all your payments, when added together, remain a modest percent of your monthly income. If your debt obligations, combining both pre-existing and the proposed house payment, are too heavy relative to your earnings, your mortgage WILL be DENIED even if your credit is stellar. They want to see both willingness AND ability to pay.
I would highly recommend taking the money you intend to spend on this car hobby and putting it towards school to reduce the amount of student loans you're taking out. Even if it's only enough to pay for 1 or 2 semesters without loans, that cuts down on the amount of debt you will have and thus makes it MORE likely, not less, that you will qualify for a home loan later, because your debt to income ratio (DTI) will be lower - and your credit is already top-notch.
Also, your aversion to working full-time needs to be managed - because if you have breaks in your work history, this can also cause a mortgage denial. After the housing bubble popped in 2007-2008, the rules have been rigid and they are not going to "make an exception" for you. Be warned, and be prepared.
I could be mistaken, but honestly, no offense intended, it sounds to me like your problem is that the idea of waiting a few years to get your finances in order before engaging in expensive hobbies is giving you a FOMO (Fear of Missing Out.) But to this I ask, what is a bigger thing to miss out on - your side hobby or your home?
Wow, lots of very usefull information here. But i am not wanting two cars. Building cars is my hobby, but the loan i was trying to get approved for, is for a new engine and transmission for my current and only daily driver. I understand what you are saying. But the thing is, this hobby of mine i have is already 90% completed, i just need the engine and trans to complete my project and also give me a reliable car to get through school.
Quote:
Originally Posted by JONOV
So you restore/repair/refurbish used cars. That's different and if your handy, which it sounds like you are, you can do ok making money at that. I was speaking more to guys that sink beaucoup bucks into their dream custom ride and are disappointed when the market doesn't support what they've built it up to be worth in their minds.
I dont refurbish cars like classics but i do refurbish my own cars. i have always bought my cars and sold them a couple grand more then What i had bought it for. In my mind this can never go bad as long as you keep the cars original aspect just in a more updated manner. For me simplicity is key. A set of wheels, re-clearcoat and polish headlights, respray any oxidized body parts(my specialty is with spray guns) and send the interior out to my guy if it is ripped or worn and cannot be had at a junkyard. Also i am a member on a lot of auto forums and have been for years so i am allowed to use their classifieds and pick up stuff from vendors or just your average joe parting out their car. I am not the type of person to invest into a 8k paint job and a 5k airride system. But this project will actually be a perfomance build once i am done with school.
A couple things...$16k isn't a decent income, it is a very low income. With that income the banks looks at it like anything that happens in your life can leave you unable to pay the loan back.
Also, a personal loan for half your annual salary is a LARGE loan for a person take out, especially for a no collateral loan.
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that's right, I got the mortgage after the crash, after they would lend anyone money, when even my dog could be called and asset. 
now i just need to pay that off, get another 4k loan and im back on the road 
