question

Maribelle7777 Posted: Aug 22, 2004 04:01 PM

question

Well DH and I decided to wait until Jan 05 to buy either a house or co-op. We just think that we don't have enough for the down payment and closing costs. We'll take our chances with rates going up. I think some houseing prices are going down..that is just my impression. And with us going to Ireland in the fall and winter I think banks would look more favorably upon us if it was after we got back (in case there's any problems with closings or contracts or whatever and we are out of the country).

So thanks to all of you that helped with my questions.

I have one more. DH wants to buy a used car now. I'm hesitant because I've read we should not make any big purchases before we go to get a mortgage. Has anyone found this to be true?

LIJuneBride Posted: Aug 22, 2004 05:30 PM

Re: question

People who want to buy homes are advised not to purchase big items (anything with a loan or that you will pay off on your credit card) because it changes your debt to income ration. They figure out how much $$$ you have to spend every month, then deduct your monthly payments for everything you owe, and then determine how much of whatever is left you can pay towards a mortgage. So, if he buys a car and takes out a loan for, say, $200 per month, that's $200 that you couldn't put towards your mortgage out of your disposable income. Did I just confuse you more????

Maribelle7777 Posted: Aug 23, 2004 01:05 PM

Re: question

No you made sense.
The car is only $1500 so we would pay cash anyway.

The last big purchase we made on our CC was our bed. We bought our tickets to Ireland with cash. I thought that would make a difference but since they were not on a CC maybe not.

Thank you!