Buying a car. Buying a house.

[WhoMe]

Buying a new house and car are very stressful.

Do you have any advice for someone who is buying a new car and also advice for buying a new house?

Perhaps this advice will help some powwows.com members as they make important decisions in choosing what is right for them.

[Emmy]

if u can pay cash 4 both....

u can make better deals with cash....

[wyo_rose]

I never bought a house, but sure got burned when buying a car LOTS of times.

For a used car: Always ask what's wrong with it. I'm pretty sure they have to tell you. It's ALWAYS worth it to take it to a mechanic for $50 bucks and have them look it over. Then you can ask to deduct the cost for whatever the mechanic says needs to be repaired, or have them fix it before you buy it. Carfax is supposed to be good, but I haven't tried it.

However, we bought a car that had a D on the title and the seller was hiding it. That means it had more than $4000 in damage before. But it turned out to be a great car, so you never know.

It's a good idea to check www.kbb.com (Kelly blue book) for the value of said car. It's also a good idea to check several dealerships and see which one offers the lowest interest.

And even though you can sometimes get by without paying a down payment, it hurts you in interest in the long run. In fact, any extra you can pay the first year of your loan will greatly reduce your overall cost. $1000 extra the first year of mine saved a whole year of payments.

For used cars I also recommend an extended warranty, but be sure to check the deductible. I was never told I had a deductible, now I have a cigarette lighter that doesn't work and I can't afford the $150 to fix it right now.

Overall, take your time. Check over many offers. Don't let salespeople pressure you. Don't be afraid to walk away and do a different deal later. Always have someone with you for a witness!! ;)

[WhoMe]

One thing I know is that the payment of a house or car depends on your credit rating.

It starts of with platinum, then gold, then silver, then bronze, etc.

Many Indian people I know do not have the best credit rating and therefore are subject to settling for higher monthly payments, longer time period payments or both.

Is there any advice to get around credit ratings? (Emmy, your advice on paying cash is one way to get around this).

[CandaePrincess]

If you can go through a credit union...you'll save tons on interest. They usually have better rates than banks, loan places, etc....We got our Impala through a credit union and they were going to loan us more than what the price of the car was. However it helped that the guy who owned the car place is a friend of ours, he gave us a spankin deal on it.

On the house, good luck with that....we're buying ours through my tribe so we lucked out on that too. But there are tons of websites that give you advice on buying a house such as finding out how much insurance will be, having it looked at so you make sure you're not buying a house on it's last leg.

Good luck!! Take deep breaths and HAVE FUN!!!!!!!! I lubb car shopping, and pickin out a house was just as fun too!!!!!

[Emmy]

if u buy a used car always run that car check thingy, carfax on it basedon its vin number... everytime is it repaired, inspected, etc, it is on the carfax.

that way u can know if there has been water damage, frame work etc done on the car.

as far as buying a house... (i will give some tips that working for hud has given me):

http://www.hud.gov/buying/index.cfm

[WhoMe]

I It's a good idea to check www.kbb.com (Kelly blue book) for the value of said car. It's also a good idea to check several dealerships and see which one offers the lowest interest.

Overall, take your time. Check over many offers. Don't let salespeople pressure you. Don't be afraid to walk away and do a different deal later. Always have someone with you for a witness!! ;)

wyo_,

These are two excellent pieces of advice! If you go prepared, you will certainly be in a better position to negotiate.

Some of my friends and family just aren't the best communicators and don't trust people they don't know. In addition, realtors and car salesmen are stressful to them.

The whole process of going from house-to-house or car lot-to car lot seems like a lot of pressure, even before you do it!


I agree with taking your time. There ARE good deals out there. It just takes time and patience to find them.

[Emmy]

Is there any advice to get around credit ratings? (Emmy, your advice on paying cash is one way to get around this).

if u have some1 to cosign with u thats one way...

but if not
I can only tell a quick fix... if u have a little while b4 u purchase...

1. Be Punctual. Late payments can lower your credit score. Paying your bills on time for several months can begin to raise it.
2. Get Caught Up. If you're behind on some accounts, the first step is to get current. Then start paying on time — the longer you do this, the better.
3. Pay Down Your Accounts. If your balance is more than 50% of your credit limit, paying more than the minimum amount due on your account can drive your balance down and your credit score up.
4. Give Yourself Time. A long history of responsible credit use can boost your score significantly. No matter what might have happened in the past, timeliness and responsibility can eventually help anyone establish good credit.
5. Correct Credit Report Errors. Check your credit report regularly. If you find any errors — and they do occur occasionally — contact the credit reporting agencies immediately


FICO Score: a measure of your credit rating — calculated from data contained in your credit report. Most lenders base their credit decisions (at least in part) on this score. Generally, the higher your score, the more likely a lender is to approve your loan and the more likely you may qualify for a lower interest rate.

There are five categories of credit data that influence your score in varying degrees: payment history (how timely you've been in paying on your accounts); amounts owed (the outstanding balances on your accounts and the percentage of each credit line you've used); length of credit history (how long your accounts have been open); new credit (the number of recently opened accounts); and types of credit used (the different types of credit relationships you have). Most FICO scores range between 350 and 850, with higher scores representing better credit risk. The higher your score, the more likely you are to get a lower interest rate on a mortgage or car loan. Your FICO score changes over time with all of your credit activity, and your actions can change your score.

[Emmy]

NOtes from my dad: who has worked for banks and farm equipment sellers...

he says never do those debt management things unless ur bill are really out of control...

dont' close accounts, it goes against ur fico score, it u have credit card switch high interest rates, transfer balances to one with low or no rates for transfered balances. or get a loan to pain them off one with payments u can handle and low interest rates...

[WhoMe]

NOtes from my dad: who has worked for banks and farm equipment sellers...

he says never do those debt management things unless ur bill are really out of control...

dont' close accounts, it goes against ur fico score, it u have credit card switch high interest rates, transfer balances to one with low or no rates for transfered balances. or get a loan to pain them off one with payments u can handle and low interest rates...

As I began to think about it, I can think of so many people that may not have a credit score at all! Some of my powwow friends haven't worked, have lived on the road or with family and have not really built credit.

How do they cope with this if they want to get powwow "wheels?"

[Emmy]

As I began to think about it, I can think of so many people that may not have a credit score at all! Some of my powwow friends haven't worked, have lived on the road or with family and have not really built credit.

How do they cope with this if they want to get powwow "wheels?"

that is a little harder to get around... but most car places have a first time car buyer program... that specializes in people who have little or no credit.

because once u buy a car and make payments on it that builds up ur credit :)

i co signed on a powwow van to build up the persons credit... the good thing about that is i can reposse it if they dont make the payments... and have a sweet lil ride ... no but really, if they have a co signer with more credit would help also...but i wouldnt recommend jus co signing for any1.

[CHRISTY H 77]

be careful when applying for store credit cards and reg credit cards...the lady that helped us buy our place said that every time u apply for a card it lowers ur credit score....i have never worked so i dont have a credit score at all...i do have 2 credit cards and a cell phone, i pay the payments but none of it is in my name...credit cards are the devil

[Emmy]

be careful when applying for store credit cards and reg credit cards...the lady that helped us buy our place said that every time u apply for a card it lowers ur credit score....i have never worked so i dont have a credit score at all...i do have 2 credit cards and a cell phone, i pay the payments but none of it is in my name...credit cards are the devil

thats not exactly true... everytime some1 runs a credit check drops ur score...

so if u apply for a card and dont get it...and u keep applying then ur score will go down...

having credit cards bring it up... that is if u carry lower balances on revolving trade lines


credit cards are only the devil if u cannot sustain the payment amount for which u have charged...

they are however the quicked way to get credit... good or bad...

[WhoMe]

...credit cards are the devil

CHRISTY,


I ain't afraid of no devil!


BECAUSE.....









"I used to date his sister!"





.... and she was ALWAYS giving me HELL!!!!



*LOL j/k

[Singing Otter]

^ LOL


I'd suggest reading everything you can get your hands on and research.

The 106 Common Mistakes Homebuyers Make and How to Avoid Them by Gary W. Eldred is an excellent book. There are soooo many programs out there for new home buyers. Most folks just don't know where to look.

There are different programs that assist with the downpayment....

http://www.getdownpayment.com/buyers/

http://www.downpaymentsolutions.com/

http://rws.mortgage101.com/templateroot/Articles/DownPayment.asp?PVLID=6902

And SHOP AROUND! You don't have to settle! Right now interest rates are dropping. Why go to a bank that has 8%, 5,000 down, and inflated monthly payments when you can go to another company that has 6.44% , no money down, and the payments you want? Stretch your dollars! Alot of banks offer different types of loan programs. When I'm finally ready, I'm moving away from the ARMS (adjustable rate mortages). Soooo many people get taken in on the lower payments not realizing that they'd have to make up the difference (sometimes up to 4 times the amount per month or balance due in full) and lost their homes.... all because they didn't know.