TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker or making a Paypal contribution here: paypal.me/SupportTMC

Purchasing a tesla after getting a mortgage

Discussion in 'Model S: Ordering, Production, Delivery' started by Rawad H., Apr 15, 2014.

  1. Rawad H.

    Rawad H. Member

    Joined:
    Apr 8, 2014
    Messages:
    124
    Location:
    Livonia mi
    So I am going to be buying a house July 1st and planning on applying for financing on my tesla July 2nd. My debt to income ratio is great, my income Is great, and my credit score is great. Do you guys think I might have a hard time buying the two so close together?
     
  2. breading

    breading Member

    Joined:
    Nov 7, 2011
    Messages:
    80
    Location:
    Kansas City
    I am in a similar situation to you. I refinanced my house to take advantage of the lower interest rates and the only problem was that I had to delay delivery of my car until the house refinancing was done. Otherwise, no problems with either loan. I got a great rate from a local credit union on the Tesla loan.
     
  3. Rawad H.

    Rawad H. Member

    Joined:
    Apr 8, 2014
    Messages:
    124
    Location:
    Livonia mi
    Ya I could order the tesla now but I don't wanna cause any problems for my mortgage so I have to wait 2 months :/
     
  4. gnelson

    gnelson Member

    Joined:
    May 26, 2013
    Messages:
    557
    Location:
    Houston
    I had no trouble financing the Model S shortly after getting a new mortgage. I would make sure the mortgage is closed before financing the Tesla.
     
  5. wraithnot

    wraithnot Model S VIN #5785

    Joined:
    Dec 16, 2012
    Messages:
    475
    Location:
    SF Bay Area
    I bought a house recently and I found the mortgage underwriting process to be somewhat ridiculous. My wife had a business loss in 2012, dissolved her law partnership in late 2012, did much better in 2013, and the underwriter still counted her income as NEGATIVE. As in subtracted from my income for underwriting purposes. So even if you have a shiny pre-approval letter, the appraisal and all the inspections look good, and a rational person would say everything is fine, there can still be plenty of drama until the loan actually funds. So I'd definitely suggest holding off on the Tesla until the deal on the house actually closes. At least in my experience, auto lenders are far more reasonable about things.
     
  6. RedMatador

    RedMatador Member

    Joined:
    Apr 15, 2013
    Messages:
    56
    Location:
    SF Bay Area
    I know you said your debt to income ratio is great, but I assume your mortgage balance is much more material than the car loan, I would definitely get the mortgage first then the car loan.
     
  7. MassX1317

    MassX1317 Addicted to TMC

    Joined:
    Aug 21, 2013
    Messages:
    411
    Location:
    Cape Cod, Massachusetts
    Wait, so you guys aren't living in your Teslas? I should have planned this better...
     
  8. jonbcampos

    jonbcampos Member

    Joined:
    Dec 22, 2013
    Messages:
    10
    Location:
    Frisco, Tx
    Funny thing. I was refinancing my home at the same time as buying my Tesla. Not the best situation but things worked out that way. In the end as long as the bank believes your debt-to-income ratio is good it isn't a problem. I will agree though that I kept waiting for the call to tell me there was an issue.
     
  9. Ugliest1

    Ugliest1 S85: "Sparky"

    Joined:
    Aug 19, 2013
    Messages:
    889
    Location:
    Victoria BC Canada
    Yeah, as many people have posted in other threads there really needs to be more storage compartments in the doors etc, somewhere to pack my underwear away out of sight.
     
  10. FlasherZ

    FlasherZ Sig Model S + Sig Model X + Model 3 Resv

    Joined:
    Jun 21, 2012
    Messages:
    7,019
    I agree with this - get your home processes all finalized and funded before you start with the credit inquiries for the car.

    I did a re-finance a couple of years ago. All of my credit scores are 800+ consistently, and I provided proof that I had maintained a multi-year history of liquid assets enough to cover the entire loan if required. The underwriter, however, was still a pain in the ass - they wanted documentation of any transaction over $5,000 into or out of every single investment and cash account over a 1 quarter period; I had purchased a very minor interest ($3,000) in a property and they wanted all the legal documentation for it; and for any hard inquiries on the credit report, they wanted hard details of the resulting credit line -- this was for a private line of credit and getting them to accept the details was a pain.

    The lesson to be learned from this - when you're dealing with a mortgage, get it out of the way first. The WORST thing you could do is add a hard inquiry to your credit report while your loan is processing -- that's the "plenty of drama".

    If your mortgage is already settled and you're now making payments, you should be in the clear enough to go ahead with the car. As long as your credit health lines up, your mortgage will probably even help you.
     
  11. AC1K

    AC1K Member

    Joined:
    Mar 18, 2013
    Messages:
    468
    Location:
    Calgary Alberta Canada
    doesnt feel right unless you put a roof over your car.

    i paid my mortgage off first THEN ordered the tesla
     
  12. tslas

    tslas Member

    Joined:
    Oct 27, 2012
    Messages:
    110
    Location:
    Hackettstown, NJ
    Ditto
     
  13. wraithnot

    wraithnot Model S VIN #5785

    Joined:
    Dec 16, 2012
    Messages:
    475
    Location:
    SF Bay Area
  14. Rawad H.

    Rawad H. Member

    Joined:
    Apr 8, 2014
    Messages:
    124
    Location:
    Livonia mi
    Thanks for all the suggestions, I'm going to have to control myself and wait until I'm in the house for now.
     
  15. ZedZidane

    ZedZidane New Member

    Joined:
    Apr 26, 2014
    Messages:
    2
    Location:
    Québec City
    Same for me, was really to send my application form tomorrow for the car. On the way to get the new house on june 2nd... I can wait another month for the car loan to be approve
     
  16. Alexander

    Alexander P# 8,878

    Joined:
    Oct 9, 2012
    Messages:
    269
    Location:
    Valencia, CA
    I did the exact same thing. I bought my house then immediately bought my Tesla.

    Its all about timing... DO NOT apply for ANY auto loans until you close escrow. I made the mistake of applying with Tesla just a few days before closing, and I almost lost the house because of it. The mortgage company will run your credit right before they fund the loan so be carful. If they see any inquiry for an auto loan they'll put the breaks on everything to investigate. A single inquiry could be enough reason for the bank to cancel the home purchase entirely if they think your not acting in good faith. I got lucky and my bank just ignored it.

    At any rate... I timed it so that my car was in production while I was in escrow for the house. You don't have to get financing for the car until Tesla's ready to deliver. So as soon as my home loan was funded, I started applying for auto loans. That's the key word, "Funded." As soon as your broker says that your home loan has been funded, you can start applying for auto loans. It takes a few days to get the auto loan paperwork in order, so you might not be able to take delivery of your Model S the very next day. Tesla will not deliver the car until they receive a check, and most banks wont write a $100k check the same day you applied. So keep that in mind.

    Tesla also wont hold your car while you wait to get financed. Two weeks is their max waiting period. After that they put your car up for sale in their inventory and if it sells to someone else you'll be forced to order again. So its all about timing.

    Find out the current wait times for delivery and time it with your July 1st home purchase. So if its a 6 week wait, and your positive that your home loan will be funded on the 1st of July. I would order your car sometime around May 19th. That way you'll have Tesla bugging you to take delivery right before or after you close escrow.

    That's what I did and it worked for me :D

    Hope this helps
     

Share This Page