Posted on: 22nd Aug, 2009 01:53 pm
My husband and I were approved for a home. We are scheduled to have a meeting about when the house will be built. Last week, my 11 year old car broke down and will not be worth fixing. I need to buy a car so I can get back and forth to work and school. I am pretty sure that if I purchase this car, we will no longer be approved for this house. What can I do? If I am not approved, that is something I will have to live with. However, can the mortgage company keep my deposit?
Hi Quietgirl,
If you buy a new car right now, it will effect your debt to income ratio and thus you may not qualify for the mortgage. Once your debt to income ratio improves, you can apply for the mortgage. If you do not take the mortgage, then mortgage company should give the deposit amount back to you.
Take care.
If you buy a new car right now, it will effect your debt to income ratio and thus you may not qualify for the mortgage. Once your debt to income ratio improves, you can apply for the mortgage. If you do not take the mortgage, then mortgage company should give the deposit amount back to you.
Take care.
if the mortgage company is the one holding an escrow deposit, then you've got bigger problems than the car having broken down. your realtor or the builder or the builder's representative ought to be the holder of any escrow deposits.
i agree that you may end up not qualifying, depending on what you do about financing a new or used vehicle. of course, in your shopping, you may be able to negotiate a low monthly payment that wouldn't have a major effect on your debt ratios.
i agree that you may end up not qualifying, depending on what you do about financing a new or used vehicle. of course, in your shopping, you may be able to negotiate a low monthly payment that wouldn't have a major effect on your debt ratios.
What are the chances that you can pull another $10-20k out of the house for a car? Most likely better rates than an auto loan, payments are tax deductible and you look more attractive walking on a lot as a cash customer which could mean more car and/or better price for you.