Home Buying in California>Question Details

Denise, Home Buyer in California

Hi, My question is... If you purchase a new/used car just before escrow..

Asked by Denise, California Wed Aug 6, 2008

how much does that damage/lower your credit rating? Is this a bad idea even if your not sure if the bank is going to accept your offer? I need a car like two months ago (we are down to one car) and school starts soon for my older two plus I have two babies under three.

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Answers

2
A good Buyers Agent would have advised you to hold off on making any large purchases like cars or furniture until after you close on the home. The real question now is what is your current credit score and how big of a downpayment do you have available for the house? Speak with your lender to see if you will still qualify for the loan. This is a very common error made by many buyers. They get very excited by the thought of the new house and want new furniture. So they rush out and spend $15-20K on furniture and then poof, no new house because their debt to income ratio is too high. Good luck!
Betina Foreman, Realtor Austin Texas
0 votes Thank Flag Link Wed Oct 29, 2008
Hi Denise,

It all depends on your downpayment and your credit score. Lenders would advise you to not purchase big items before escrow. If your escrow will close in a week or two and you need to have a car may be you should look into a car rental.
But before that talk to your lender.

Homa
Broker Associate
Prudential California Realty
0 votes Thank Flag Link Thu Aug 7, 2008
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