135 Purchase in Limbo

Terp1 · 12-14-2008, 12:29 PM

Ever since the 1 series came out I've been planning on getting it as my next car. I even got my wife to agree to it. She is currently finishing her Master's and will be done Sep. '09, so I planned on getting it through ED in Sep/Oct '09. It would be a win/win for both of us, I get the 1'er and she gets a trip to Europe.

Here's the problem: We've outgrown our house. We plan on putting our current house on the market in Spring of '10, hopefully selling it, and then getting a bigger house. The concern is if I get the 1 it will negatively affect our ability to get a house.

Should I wait until after we get the house? I don't know if I can wait that long. Help!

ptack · 12-14-2008, 05:08 PM

By itself, I don't think a new car will affect your ability to get a loan as much as whether you manage to successfully sell your current house and both of you have solid jobs (with enough income to qualify). If you're on the bubble, forget the car. You have about 7 months to decide.

Terp1 · 12-15-2008, 10:00 AM

Thanks. I guess I'll have to see how it goes.

imported_mega · 12-15-2008, 02:15 PM

it will drop your credit score, how much it hurts depends on your score

my score dropped over 50 points, and has been going up 1 point per month

Terp1 · 12-15-2008, 03:47 PM

50 points, ouch! Looks like I'm in wait and see mode.

former · 12-15-2008, 11:12 PM

I'm not an expert, but I'm not clear as to why a car loan would so negatively affect your credit score. Usually, when you are approved for a loan your credit score goes up as that is a positive indicator on your credit score. Your credit score is typically predicated upon your history of paying back your debts as well as how much available credit you are using vs how much you have (how much balance you are carrying). So as long as you are making your payments, that too, is a positive thing.

However, there may be a negative affect on your ability to get a home loan. One of the things they will look at is the percentage of your income which is available to pay for your home loan. If most of your income is taken up with payments on credit card debt (and they'll make certain assumptions based on your open balances) and car loans, etc. you may get denied for a home loan with a higher value than you may have now.

Of course, all of this is assuming that we don't all perish in the post-financapocalypse. :biggrin:

Terp1 · 12-16-2008, 07:46 AM

Thanks for the sunny outlook. Over the next couple of months I'll probably talk to some banks and mortgage lenders and see what they say.

12-14-2008, 12:29 PM	#1
Terp1 Private First Class 23 Rep 193 Posts Drives: '01 BMW 325Ci Join Date: Apr 2008 Location: Dayton, OH iTrader: (0)	135 Purchase in Limbo Ever since the 1 series came out I've been planning on getting it as my next car. I even got my wife to agree to it. She is currently finishing her Master's and will be done Sep. '09, so I planned on getting it through ED in Sep/Oct '09. It would be a win/win for both of us, I get the 1'er and she gets a trip to Europe. Here's the problem: We've outgrown our house. We plan on putting our current house on the market in Spring of '10, hopefully selling it, and then getting a bigger house. The concern is if I get the 1 it will negatively affect our ability to get a house. Should I wait until after we get the house? I don't know if I can wait that long. Help!
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12-14-2008, 05:08 PM	#2
ptack Brigadier General 306 Rep 4,483 Posts Drives: 135i Join Date: May 2008 Location: NJ iTrader: (0) Garage List 2008 135i [6.50]	By itself, I don't think a new car will affect your ability to get a loan as much as whether you manage to successfully sell your current house and both of you have solid jobs (with enough income to qualify). If you're on the bubble, forget the car. You have about 7 months to decide. __________________ 135i, SGM, Coral, Sport Package, Auto, Premium Hifi, USB/ipod, Apex EC-7s, PPK Stage II
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12-15-2008, 10:00 AM	#3
Terp1 Private First Class 23 Rep 193 Posts Drives: '01 BMW 325Ci Join Date: Apr 2008 Location: Dayton, OH iTrader: (0)	Thanks. I guess I'll have to see how it goes.
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12-15-2008, 02:15 PM	#4
imported_mega Colonel 127 Rep 2,208 Posts Drives: various bmw's Join Date: Jul 2007 Location: neverland iTrader: (0)	it will drop your credit score, how much it hurts depends on your score my score dropped over 50 points, and has been going up 1 point per month __________________ You only need two tools in life - WD-40 and Duct Tape. If it doesn't move and should, use the WD-40. If it shouldn't move and does, use the duct tape. Driving e82, e72, e85, R53 Gone but not forgotten.. 1974 2002, many various 3s.
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12-15-2008, 03:47 PM	#5
Terp1 Private First Class 23 Rep 193 Posts Drives: '01 BMW 325Ci Join Date: Apr 2008 Location: Dayton, OH iTrader: (0)	50 points, ouch! Looks like I'm in wait and see mode.
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12-15-2008, 11:12 PM	#6
former Practical Idealist 9 Rep 408 Posts Drives: 2009 135i Coupe Join Date: Oct 2005 Location: Greater Los Angeles Area iTrader: (0)	I'm not an expert, but I'm not clear as to why a car loan would so negatively affect your credit score. Usually, when you are approved for a loan your credit score goes up as that is a positive indicator on your credit score. Your credit score is typically predicated upon your history of paying back your debts as well as how much available credit you are using vs how much you have (how much balance you are carrying). So as long as you are making your payments, that too, is a positive thing. However, there may be a negative affect on your ability to get a home loan. One of the things they will look at is the percentage of your income which is available to pay for your home loan. If most of your income is taken up with payments on credit card debt (and they'll make certain assumptions based on your open balances) and car loans, etc. you may get denied for a home loan with a higher value than you may have now. Of course, all of this is assuming that we don't all perish in the post-financapocalypse. :biggrin:
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12-16-2008, 07:46 AM	#7
Terp1 Private First Class 23 Rep 193 Posts Drives: '01 BMW 325Ci Join Date: Apr 2008 Location: Dayton, OH iTrader: (0)	Thanks for the sunny outlook. Over the next couple of months I'll probably talk to some banks and mortgage lenders and see what they say.
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