Zillow Advice: Home Buying - Finance a car, or buy a car with cash prior to pre approval of a mortgage? http://www.zillow.com/advice-thread/Finance-a-car-or-buy-a-car-with-cash-prior-to-pre-approval-of-a-mortgage/470472/ Zillow Advice | Zillow Real Estate You need to discuss this ... http://www.zillow.com/advice-thread/Finance-a-car-or-buy-a-car-with-cash-prior-to-pre-approval-of-a-mortgage/470472/ You need to discuss this situation with your lender, it is part of your financial profile. Wed, 05 Dec 2012 21:11:00 GMT http://www.zillow.com/advice-thread/Finance-a-car-or-buy-a-car-with-cash-prior-to-pre-approval-of-a-mortgage/470472/ 2012-12-05T21:11:00Z If you have to ask the question, ... http://www.zillow.com/advice-thread/Finance-a-car-or-buy-a-car-with-cash-prior-to-pre-approval-of-a-mortgage/470472/ If you have to ask the question, you probably shouldn't be financing a car if you wish to qualify for the home you desired.&nbsp; However, to get a rough guess on the impact of financing your car on mortgage eligibility, why not put in some scenarios into the <a href="http://www.zillow.com/mortgage-calculator/house-affordability/">affordability calculator.?</a> <br/><br/>For example, if I put in $60,000 annual income and change it from debt of $0 per month to $500 per month, I find that the difference in what I can afford is $95 k.&nbsp; Wow!&nbsp;&nbsp;&nbsp; Of course, I haven't the slightest idea your income nor the car payment nor your down payment, so try the calculator to see what numbers you generate.&nbsp;&nbsp; Then, talk to your lender.<br/><br/>It is not unusual for people to not think through this ahead of time, get pre-approved, make an offer, buy something big, then find they can't get financing due to their purchase.&nbsp;&nbsp; I'm glad you are thinking it through ahead of time.<br/><br/><br/><br/><br/> Wed, 05 Dec 2012 20:58:00 GMT http://www.zillow.com/advice-thread/Finance-a-car-or-buy-a-car-with-cash-prior-to-pre-approval-of-a-mortgage/470472/ 2012-12-05T20:58:00Z Don't make any finance purchases ... http://www.zillow.com/advice-thread/Finance-a-car-or-buy-a-car-with-cash-prior-to-pre-approval-of-a-mortgage/470472/ Don't make any finance purchases before you close.&nbsp; Chances are if you are borderline approved the loan will be denied at the closing table and you will loose your deposit. Wed, 05 Dec 2012 20:40:00 GMT http://www.zillow.com/advice-thread/Finance-a-car-or-buy-a-car-with-cash-prior-to-pre-approval-of-a-mortgage/470472/ 2012-12-05T20:40:00Z The answer depends upon how ... http://www.zillow.com/advice-thread/Finance-a-car-or-buy-a-car-with-cash-prior-to-pre-approval-of-a-mortgage/470472/ The answer depends upon how much money you have for a downpayment, and what your debt to income ratio is based upon how much you want to finance. Assuming that you are close to the max for debt to income, not having a car payment will allow you to finance a lot more than you would if you get a car loan. So, if you can buy a cheap car with cash and still have enough for the downpayment, that's the best way to go. Wed, 05 Dec 2012 20:23:00 GMT http://www.zillow.com/advice-thread/Finance-a-car-or-buy-a-car-with-cash-prior-to-pre-approval-of-a-mortgage/470472/ 2012-12-05T20:23:00Z It depends on your debt ratio. ... http://www.zillow.com/advice-thread/Finance-a-car-or-buy-a-car-with-cash-prior-to-pre-approval-of-a-mortgage/470472/ It depends on your debt ratio. I always tell borrowers to&nbsp;make all major purchases after the closing.&nbsp;&nbsp; Wed, 05 Dec 2012 20:23:00 GMT http://www.zillow.com/advice-thread/Finance-a-car-or-buy-a-car-with-cash-prior-to-pre-approval-of-a-mortgage/470472/ 2012-12-05T20:23:00Z