How Long After Buying a Car Can I Buy a House?
Suppose you're thinking about buying both a vehicle and a home. In that case, you're probably wondering quite a few questions, including, “what should I know about typical interest rates on mortgages and car loans,” “should I buy a new or used car,” and “how long after buying a car can I buy a house?”
When thinking about buying a car and a house, there are a few essential factors that you should keep in mind.
After all, you don't want to have completed the purchases and realize that you unexpectedly can't make the monthly payments.
Here are some factors to consider when thinking about how long you should wait after buying your car to buy your house.
Your Credit Score
Before buying a home, you'll want to ensure that you have good credit. More specifically, you'll want to make sure that your credit history is as good as it can be and that your credit score is in perfect shape. Unfortunately, buying a car can negatively impact both (in the short term).
Your Debt-to-Income Ratio (DTI)
Your debt to income ratio is a measurement of how much of your income needs to go towards paying off liabilities. Lenders look at this measurement to determine the loan rates they will apply to the house's purchase price. Also, when trying to apply for a loan, you'll have a much better shot to negotiate successfully with lenders if you have a higher DTI than lower.
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