looking for loan, no pay here pay here

[collaredfairy0304]

So here is the story, our credit was shot. we had to go to a buy here pay here just to get a car. that is going to be paid off in august. almost 8 months early! I would like to get a regular loan. our payments were about $330 a month. but hoping with a little bit of a credit build up, maybe we could get a regular one and pay maybe $175 or so. I just dont know where to start. We have our fico scores. we also just got preaproved for a home loan. i also heard that you would want to do both of them about the same time, (so the home loan doesnt show up, and be included in the debt to income ratio. could any of you shed a little light.

thanks

 

and it was supposed to read " no buy here, pay here"

Edited May 29, 2007 by collaredfairy0304

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[lostnjax]

I think you are thinking this process out backwards. Your best option is to close on the house first considering you were probably approved on your current financial picture. Acquiring a car between now and closing may mean not being able to qualify for the mortgage. Don't trade a house for a car.

 

Now, once you have closed on your home lenders will be sending more pre-approvals than you can handle.

 

Try hanging on to the car you currently have until you close. It will be tough to find a decent car @$175/mo.

is another battle you will face considering your bruised credit. Take into consideration that a $6500 car can only be financed at most 42 mos. and that really depends on mileage, credit and book value. But asuming all of that is true, and you miraculously pull off an 8% rate and a 42 mo term (not likely) you would be at 177.95/mo. your $6500 would have to include taxes, tags, fees, etc. (realistically you are lookin at a 5k car) which is probably not any better than you already have.