Dear everyone,

I have a question:

Once I have saved some money, should I buy real estate first or buy a new car(the old one is paid for)?

Why is that?

Simply, a house will build you wealth. A car will depreciate the minute you drive it off the lot. If you can afford a house, it is a much better investment. Buying a new car, especially is one of the worst investments you can make.

How much down payment do I need for the first house?

Thanks Alkalineangel:)

Depends on your lender and your credit. I wouldn't get any credit cards, though, if you are considering purchasing a house.

She is right. 20% is recommended, but that is terribly difficult if it is your first home. But remember that you will have to pay PMI if you are below 20% on a down payment. That is a sort of insurance you have to pay to ensure you will pay your mortgage... seeing as you don't have a lot of equity in the home yet. I would aim for 10-20% if you could. But there are other plans like a FHA loan that only require 3-5% down. Some offer o% down, but be leary of those. Make sure you do your research, there are a lot of bad loans out there now...

You could join the Armed Forces. Then you would be eligible for a VA loan which doesn't require anything down. Just a thought!

They also give a decent sign on bonus... you could put that in savings.. lol...

Lol, I'd like to marry an officer ;) thank you ladies!

Hehe... smart girl. Not a problem good luck.

I know a couple of single ones, but they are way too old for you!

^.^ lol, thank you... how old are they? ;)

Well no one should buy a "new" car, a very nice one year old car perhaps a fleet car is always the best deal, On a new car you loose several thousand dollars the first 10 minutes you drive it off the lot.

Too manty people nowday have the attitue that "you can always sleep in your car, but you can't drive your house." Seriously, if you have plans to buy a home in the near future DON'T buy a car, or anything else with a big payment, as that could mess up your Debt To Income Ratio, causing you to not qualify for a mortgage. In the past I have seen borrowers celebrate the acceptance of their offer to purchase a new home by buying a car to put in their new garage, only to wind up with no house.

Quote:

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Originally Posted by Dr D

as that could mess up your Debt To Income Ratio, causing you to not qualify for a mortgage. In the past I have seen borrowers celebrate the acceptance of their offer to purchase a new home by buying a car to put in their new garage, only to wind up with no house.

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Excellent! Debt to income ratio is what I have concerned too! Thanks