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May 19, 2023 at 7:04 pm #82194USER
I do plan to sell my current condo; however, the likelihood of it selling before I buy something new is low. It will rent at a profit in the meantime and we’re factoring that into the income calculation.
What would y’all do?
I want to buy a new house. I currently own a condo, and although I love where I live, the HOA is a disaster/money pit and could use an extra bedroom.
I found something that checks all my boxes and is affordable (making payments wouldn’t be an issue). Unfortunately, my mortgage broker just informed me that my debt-income ratio is too high to qualify for the loan I’d need to purchase it. This is due to my car loan for the new car I just bought (totaled my last one). I have perfect credit and no other debt (no current mortgage).
I have the option to pay down the car loan and qualify for the house loan; however the car loan is at 0% APR so I was planning to let it ride for its full 36mos. I hate to spend money that could sit making more money before I need to. I technically don’t NEED the new house. I’d welcome any and all thoughts.May 19, 2023 at 7:08 pm #82195Matthew
The real issue here is likely mortgaging a second home before your condo sells.May 19, 2023 at 7:09 pm #82196Meredith
You have no current mortgage? So condo is paid off?
I am concerned about the size of a car loan that would make your DTI too high. Either this is a very expensive car or you are looking to buy a very expensive house at the tippy top of your qualification bracket and any loan, car or otherwise, pushes you over.
This sounds like more house than your income can support. I’d sell the condo first so you have a large down payment.May 19, 2023 at 7:09 pm #82197Mike
Just pay off the auto loan.
Your 0% loan is making you about $525 a year (taxable) for every $10k of outstanding principal.
In the big scheme of things, it’s a small price to pay to get into the home you want to live in!