Buy a car or house first?

I need a new car, but I would like to own a house, which should I do first?  

The new government incentive ($4500) towards the purchase of a new car is very enticing. At http://www.cars.gov/ you can learn all about the new federal “cash-for-clunkers” program.  One suggestion, if you currently have a paid off ‘clunker’ and are thinking of getting a mortgage to buy that new house, better buy the house first. With no car payment it is easier to get the mortgage approved. If you buy the new car first and have a car loan, that payment works against you when applying for a mortgage.

With a ‘First Time Homebuyer credit’ and a “cash-for-clunkers” program, now is a great time to do something. Prices are down and so are interest rates.

  

2 Responses to “Buy a car or house first?”

  1. Mike, FSBO.com Says:

    USA TODAY reports Fri 7/31/09:
    The government suspended the explosively popular “cash for clunkers” program, fearing it would go broke before it could pay what it still owes dealers for a huge backlog of sales, according to congressional offices and a dealer group.
    Suspension of the program was confirmed by Bailey Wood, legislative director for the National Automobile Dealers Association (NADA).

  2. samson Says:

    i need a used car

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