finance or home mortgage guys?

[HIGHRISK]

My question is I'm getting ready to build a house. I'd like to buy my son a new car as his is on its way out. If I bought a 15-20k car in my name would that mess me up for a home construction loan? I have a good income, good credit with only 2 car payments and no other debt. My debt to income ratio is like 8%.

Anyone in this field or having delt with this scenario can give me some real world advice not opinions. Appreciate it.

 

[johntt44]

My question is I'm getting ready to build a house. I'd like to buy my son a new car as his is on its way out. If I bought a 15-20k car in my name would that mess me up for a home construction loan? I have a good income, good credit with only 2 car payments and no other debt. My debt to income ratio is like 8%.

Anyone in this field or having delt with this scenario can give me some real world advice not opinions. Appreciate it.

I just went through something similar. As long as you do it before you apply for the construction loan you should be fine. Mine was a home equity loan and I was told not to take out any other loans during the time between applying and closing. If I had done it beforehand it would have been ok as long as credit and income were enough for the 2 loans.

 

[HIGHRISK]

Yea income is not an issue at all. I just know banks are fucked up sometimes. I applied for a loan one time for a trailer. I literally had 3-4 times the cash in my bank account to purchase the trailer and got denied lol

Appreciate the feed back.

 

[MindlessWork]

Nowadays banks are pickier even if you can show you have plenty of stable income and a low debt to income ratio. Years ago I was able to do a cash-out on a home purchase (had a well paying job at IBM then) so that I could kill 2 birds with one stone: pay off my mother's car as well as buying the house but nowadays it is a lot harder to do that sort of deal.

If you have the cash, why not cover say the first $20K of construction then the rest in a loan. You might ask the bank about that. Or at the worst pay cash for your son's car but make sure you get the best deal if you do pay cash for a new car.

 

[johntt44]

Yea income is not an issue at all. I just know banks are fucked up sometimes. I applied for a loan one time for a trailer. I literally had 3-4 times the cash in my bank account to purchase the trailer and got denied lol

Appreciate the feed back.

Yeah, when I turned 18, I walked into a car dealership with no cosigner and a shit job and got approved for a brand new Nissan hard body pickup. Not these days! I had to cosign a lease for my daughter and her friend (both 18) for a college apt!

 

[hurricane]

My question is I'm getting ready to build a house. I'd like to buy my son a new car as his is on its way out. If I bought a 15-20k car in my name would that mess me up for a home construction loan? I have a good income, good credit with only 2 car payments and no other debt. My debt to income ratio is like 8%.

Anyone in this field or having delt with this scenario can give me some real world advice not opinions. Appreciate it.

@johntt44 is spot on. We just started construction a few weeks ago on a new home with baby #3 on the way.
During the loan process my son wanted a car. Bank specifically said any loans or opened credit cards during the loan process would slow down their decision and possibly get us turned down.
Ended up just paying cash for a 2006 4runner. Talk to your bank or mortgage broker bud. They'll tell you exactly what you should or shouldn't do.

 

[MindlessWork]

@johntt44 is spot on. We just started construction a few weeks ago on a new home with baby #3 on the way.
During the loan process my son wanted a car. Bank specifically said any loans or opened credit cards during the loan process would slow down their decision and possibly get us turned down.
Ended up just paying cash for a 2006 4runner. Talk to your bank or mortgage broker bud. They'll tell you exactly what you should or shouldn't do.

Construction loans are like mortgages, and the application process is very similar so yes it is a must to not apply for any credit during the construction loan decision process. Many construction loans convert to a mortgage once construction is completed and occupancy certificate is approved/issued.

 

[HIGHRISK]

@johntt44 is spot on. We just started construction a few weeks ago on a new home with baby #3 on the way.
During the loan process my son wanted a car. Bank specifically said any loans or opened credit cards during the loan process would slow down their decision and possibly get us turned down.
Ended up just paying cash for a 2006 4runner. Talk to your bank or mortgage broker bud. They'll tell you exactly what you should or shouldn't do.

That's kinda what I'd like to do. Sell his car for about 3k and put about 7k with it. But with him being at college and always visiting his friends at both ends of our state at there college. Seems like a good low low mileage certified Honda is the answer. It's not the money I'm putting into this current Honda it's the inconvenience it causes me lol.

It's been a great car, one owner and still looks and drives great..Every service that has been recommended by Honda has been done do to it was my mother in laws and she's anal as hell about service like I am. Just creeping on 200k it starts to Nickle and dime me for money and most important my time!

I'd hate to just upgrade a little to a 8-10k car that I know absolutely nothing about with no warranty. He's young with no credit so I don't want him to get hammered on interest. As you know I'm trying to keep all my cash for a down payment on the house so I don't have PMI. Hell IDK guess I'll check with the bank and see what they say.

 

[Brandaddy]

I just got approved for a mortgage on a investment property while having an open balance on a truck I just got 6 months ago. They basically just looked at my current debts and my last two years income and said if I could put 20% down I was approved. I would imagine getting a loan for a rental property would be just as hard as one to build a house.

 

[hurricane]

Hope all goes well brother. Sounds lime

That's kinda what I'd like to do. Sell his car for about 3k and put about 7k with it. But with him being at college and always visiting his friends at both ends of our state at there college. Seems like a good low low mileage certified Honda is the answer. It's not the money I'm putting into this current Honda it's the inconvenience it causes me lol.

It's been a great car, one owner and still looks and drives great..Every service that has been recommended by Honda has been done do to it was my mother in laws and she's anal as hell about service like I am. Just creeping on 200k it starts to Nickle and dime me for money and most important my time!

I'd hate to just upgrade a little to a 8-10k car that I know absolutely nothing about with no warranty. He's young with no credit so I don't want him to get hammered on interest. As you know I'm trying to keep all my cash for a down payment on the house so I don't have PMI. Hell IDK guess I'll check with the bank and see what they say.

Can't go wrong with a certified used Honda or Toyota. They fukin run forever bud. But yeah definitely check with the bank. It may be no issue. Good luck with the build brother. Hope it's your dream house and everything goes smoothly.

 

[HIGHRISK]

Hope all goes well brother. Sounds lime

Can't go wrong with a certified used Honda or Toyota. They fukin run forever bud. But yeah definitely check with the bank. It may be no issue. Good luck with the build brother. Hope it's your dream house and everything goes smoothly.

Thanks brother. Yeah it's our "dream" home. Bought a few acres to build on. I'm already over the process already lol. I've built several home in subdivisions where they do everything except pick colors for you. I haven't even finalized the plans with the architect. I mean damn. We have to plan every square inch of this damn house. Where the walls are the outlets etc..... I've heard it's worth it when your done if your still alive lol. I told my wife if you want it you better pick it now! I'm not doing this again

 

[hurricane]

Thanks brother. Yeah it's our "dream" home. Bought a few acres to build on. I'm already over the process already lol. I've built several home in subdivisions where they do everything except pick colors for you. I haven't even finalized the plans with the architect. I mean damn. We have to plan every square inch of this damn house. Where the walls are the outlets etc..... I've heard it's worth it when your done if your still alive lol. I told my wife if you want it you better pick it now! I'm not doing this again

Yup this is it for us. Our builder gave us some great ideas to go off of. We thought about well water but decided against it. It's a big process but worth it when you have what you love.

 

[gr8whitetrukker]

My question is I'm getting ready to build a house. I'd like to buy my son a new car as his is on its way out. If I bought a 15-20k car in my name would that mess me up for a home construction loan? I have a good income, good credit with only 2 car payments and no other debt. My debt to income ratio is like 8%.

Anyone in this field or having delt with this scenario can give me some real world advice not opinions. Appreciate it.

If you buy that car with a damn loan...
Dave Ramsey is gonna come thru the walls at night to haunt yo ass

I think you know the answer...

 

[Sk8man101]

That's kinda what I'd like to do. Sell his car for about 3k and put about 7k with it. But with him being at college and always visiting his friends at both ends of our state at there college. Seems like a good low low mileage certified Honda is the answer. It's not the money I'm putting into this current Honda it's the inconvenience it causes me lol.

It's been a great car, one owner and still looks and drives great..Every service that has been recommended by Honda has been done do to it was my mother in laws and she's anal as hell about service like I am. Just creeping on 200k it starts to Nickle and dime me for money and most important my time!

I'd hate to just upgrade a little to a 8-10k car that I know absolutely nothing about with no warranty. He's young with no credit so I don't want him to get hammered on interest. As you know I'm trying to keep all my cash for a down payment on the house so I don't have PMI. Hell IDK guess I'll check with the bank and see what they say.

If you sell his car you HAVE to put the correct amount of money on the slip, the mortgage company will want documentation on all your shit for at least the last 2 months.

If you have cash in the safe or anything, put it into an account right now so they can see it's been in there for at least 2 months.
If not, you'll have to get a family member to give you that money as a "gift" and provide documentation.

 

[johntt44]

If you buy that car with a damn loan...
Dave Ramsey is gonna come thru the walls at night to haunt yo ass
View attachment 87325
I think you know the answer...

Smart man! This is the first loan Ive taken out in 10yrs. My daughters going to college and my wife wanted to buy a new house. Im remodeling instead. We'll be empty nesters next year and my house is a half mile from the water. Im not moving. I was debt free until I took this equity loan.

 

[MindlessWork]

Thanks brother. Yeah it's our "dream" home. Bought a few acres to build on. I'm already over the process already lol. I've built several home in subdivisions where they do everything except pick colors for you. I haven't even finalized the plans with the architect. I mean damn. We have to plan every square inch of this damn house. Where the walls are the outlets etc..... I've heard it's worth it when your done if your still alive lol. I told my wife if you want it you better pick it now! I'm not doing this again

Make sure it has space for a home gym, or you can construct a custom shed for a home gym.

 

[Demondosage]

Buy a more affordable car in cash, problem solved. Let him buy the next one if he wants a car that costs 20 grand.

I'm going through this right now with my stepdaughter. She's getting a used Honda or Toyota with cash I spend on it, the next one is on her

 

[HIGHRISK]

If you buy that car with a damn loan...
Dave Ramsey is gonna come thru the walls at night to haunt yo ass
View attachment 87325
I think you know the answer...

Your 100% right. I know the answer but yet I still look for an excuse to finance him a car.

 

[Ozzy619]

I just went through something similar. As long as you do it before you apply for the construction loan you should be fine. Mine was a home equity loan and I was told not to take out any other loans during the time between applying and closing. If I had done it beforehand it would have been ok as long as credit and income were enough for the 2 loans.

This is the best advice

 

[Rockclimber]

I am a registered investment advisor, I've been reading this thread but reluctant to give my advice because finance is very gray. In my opinion I would not add any additional loans under my name. If you are looking to finance a house you want no new loans for several years. The difference in interest rates and the cost it will be over the 30 year or 15 year mortgage is incredible even with just a few basis points difference. 4.14 is very different from 4.17. Do whatever you can to get the lowest basis point loan you can.