we are ready to refinance any day now and close but want to buy a car now and pay cash will that effect us negatively?

Asked by rjbdeb2, Santa Rosa, CA Thu Mar 14, 2013

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Scott Godzyk, Agent, Manchester, NH
Thu Mar 14, 2013
You should refrain from any large purchase during the mortgage process. It could affect the banks decision to give a clear to close.
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Bill Eckler, Agent, Venice, FL
Thu Mar 14, 2013
Absolutely....this is one of the "cardinal sins" when applying for a mortgage. Never make large purchases just prior to or when in the process of qualifying for a mortgage. It's an "express pass" for not qualifying for the funds you require.

Best to wait on the car until after you close on the home purchase.

Good luck,

Bill
0 votes
Pacita Dimac…, Agent, Oakland, CA
Thu Mar 14, 2013
Perhaps you should hold off, if you can, on buying a car -- whether you pay for it in cash or borrow money. Keep your liquid assets together to make your finances look better. Perhaps you should look into paying down as much of your debt as possible, keep your credit card balances low, and don't indulge in any high-ticket purchases.

Refinancing will entail pretty much the same process as when you bought your property and took out a loan. You had to qualify for the loan, and show you have the money for related expenses.

And since you have a home now, there are some guidelines as to how the banks set values for the property that is being refinanced. They will also send an appraiser to determine its current market value based, and what the bank's risks would be.

Good luck
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