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Buying a car and home are some of the biggest purchases you’ll ever make. There are so many questions on your mind and we want to cover some of those today. Grab your vision boards and let’s talk cars and homes.
Ready to learn about some of the most important things you’ll need to know when buying a car and a house? This post aims to answer all those questions and more, providing you with a straightforward guide to making these two large purchases. Let’s get right into it.
How Long After Buying a Car Can I Buy a House? Factors to Consider Here are some factors to consider when thinking about how long you should wait after buying your car to buy your house.
Your Credit Score Before buying a home, you’ll want to ensure that you have good credit. More specifically, you’ll want to make sure that your credit history is as good as it can be and that your credit score is in perfect shape. Unfortunately, buying a car can negatively impact both (in the short term).
Your Debt-to-Income Ratio (DTI) Your debt to income ratio is a measurement of how much of your income needs to go towards paying off liabilities. Lenders look at this measurement to determine the loan rates they will apply to the house’s purchase price. Also, when trying to apply for a loan, you’ll have a much better shot to negotiate successfully with lenders if you have a higher DTI than lower.
Your Cushion factor ties to your debt-to-income ratio, but you add debt to your finances when you buy a car. This factor, combined with an additional mortgage, means that you will have a tiny cushion to withstand any shocks to your finances compared to before you made the two purchases.