Question: financing car and mortgage

We mailed our mortgage application in and the company received it this week. They will start to review it by next week but we won't get the committment letter for 3 more weeks. We are looking ot buy a new car, and there's a 0% financing deal going on with Ford Taurus that ends on March 3rd. We have no debt, aside from my student loan. Our credit history isn't perfect (no bankruptcy, but late payments on credit cards), but we've been very good for the past 2 years, and our incomes are more than enough for a 2 BR co-op mortgage.

If we decide to go ahead and buy the car in the next week, do you think it will jeapordize our chances of getting approved for the co-op mortgage? We're going to put about $5000 down, so our monthly payments will be no more than $300. I don't want to miss the 0% deal, but also don't want to risk not getting the co-op either.

I agree with Michelle and was not planning on applying for anything while we waited to close on our house, however I ended up doing exactly what you are suggesting myself and it was no problem.

We were awaiting our mortgage and were in much the same situation you are. However, we were moving in a few weeks and didn't own a car. Our new location required that we have a vehicle so we decided to go for it. We leased a car during the same time and it was not a problem.

I know this probably doesn't help your situation but good luck either way.

I agree with Michele ... I know that there is a debt to income ratio or something like this. Basically, you can only have a certain percent debt to your income (I think it's like 35%). Also, your mortgage company does check your credit again right before closing ... so it's really a bad idea to start incurring debt before you close ... at least my two cents.

I am in the same position right now. We just went into contract on our coop last week and a few days before that my car was totaled. I was told to wait and not make any major purchases until everything goes through with the mortgage. I don't want to take any chances and lose the coop. I think you should definitely wait, but that's just my opinion. These car places have those special deals all the time. You won't miss out.