Should I refinance my car before purchasing a home?

Asked by Rizz, Pennsylvania Wed Jan 2, 2008

I'm looking to purchase my first home this year and have less than good credit. My debt amount is less than $6000, but poor decisions that I made in the past have lowered my credit score. I currently have a high car loan payment and thought that it would be good to lower that payment by refinancing so that I can focus more on paying off my debts and saving for a house. Would refinancing my car loan be a positive step? If so, what loan companies should I look into. If not, what would you recommend for a first time home buyer???

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8
Michael Doyle, Agent, Brooklyn Park, MN
Wed Jan 2, 2008
Rizz,
Before you do anything find and good loan officer who will help you repair your credit. If you don't know anyone ask freinds or family who have purchased a home recently for a referral. I don't work in your area but if you can't find someone who can help you I can see if my loan officer can refer you to someone.
Michael Doyle Realtor
1 vote
RUNZI LOAN F…, Home Buyer, New York, NY
Wed Nov 18, 2015
My name is Runzi Moore,CEO Runzi loan firm i offer 2.5% loan contact me personally with this email. runziloanfirm@outlook.com
0 votes
RUNZI LOAN F…, Home Buyer, New York, NY
Wed Nov 18, 2015
My name is Runzi Moore,CEO Runzi loan firm i offer 2.5% loan contact me personally with this email. runziloanfirm@outlook.com
0 votes
K. Johnson, , Almaden, San Jose, CA
Fri Jan 4, 2008
Where will your money for a down payment on the house come from? You sound like you are likely to get yourself in financial trouble. Start saving your money.
Simple rules for financial security: Only buy cars you can pay cash. Save up 20% for a down payment on the house. This may take a few years, but you will be better off.
0 votes
Damion Boyce,…, Agent, Lakeland, FL
Fri Jan 4, 2008
Rizz,

You have some great advice about your car. I agree that it starts with an experienced loan office who can tell you if the refinance is even necessary. Also, ask the loan office about USDA which is a loan program for first time home buyers. This (USDA) program may enable you to buy or even build a home with less than $100.00 out of your pocket. Good luck with your first home!
0 votes
Eric Fairchi…, , Illinois
Thu Jan 3, 2008
Rizz-
Depending on your time line for purchasing a home refinancing your car may not be a bad idea, because it will bring your debt to income ratios lower. Another suggestion would be to get into a credit repair program, which would help to boost your fico scores. Please feel free to email me @ thecreditdoc@gmail.com
0 votes
Vicki Masell…, Agent, Duluth, GA
Wed Jan 2, 2008
Excellent advice, Michael. Surround yourself with professionals, Rizz. Find a reputable Realtor and loan officer to discuss your plans and review your particular credit history before taking any action. They will be able to furnish you with sound advice to ensure that you aren't inadvertently shooting yourself in the foot. Depending upon your particular situation, a lease with an option to purchase the home may also be a viable option for you. Best wishes for buying your first home in 2008 - Ted
0 votes
Realtor, ,
Wed Jan 2, 2008
Rizz, getting any new loans or applying for new credit will not look good on your credit report. A lender will review this and think you are out looking to increase your debt and will consider you a higher risk. This wouId most likely increase your interest rate on your new mortgage . I would suggest to wait to do this after you buy a home. Once your house has been recorded in your name, (not during the escrow) then you can go out and shop for car loans.
0 votes
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