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?”

How Long After Buying a Car Can I Buy a House? Factors to Consider

Your Credit Score

Having your credit score in good shape is important because bad credit can increase the interest rate you’re able to get on your mortgage (potentially adding up to thousands of dollars over time). So before you rush into scrapping up a down payment for your home, be sure to get a copy of your credit report and make sure that your score is as high as can be.

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.

Your Cushion

This factor ties to your debt-to-income ratio, but you add debt to your finances when you buy a car. This factor, combined with an additional mortgage, means that you will have a tiny cushion to withstand any shocks to your finances compared to before you made the two purchases.

The Verdict

The answer to the question “how long after buying a car can I buy a house?” will depend entirely on your financial situation. The home-buying process looks very different for different people, and a car payment can also differ by hundreds of dollars every month.

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