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I'm a mortgage lender and have the following comments regarding the previous posts:

re: credit scores
1. inquiries posted usually within say 5 business days at different lenders will be treated as "one" inquiry, and should have a minimal effect on your score. I would limit my applications to three lenders. Note: one auto dealer may make inquiries with several lenders so don't apply with too many different dealers! if you do a test drive and give them personal info (soc. sec. # etc.) beforehand, they are very likely to pull your credit- perhaps without your knowledge/tacit consent.
2. NEVER have I seen an inquiry INCREASE someone's score.
3. a common misconception to raise your score is to close "unused" or zero-balance accounts. Once an account is opened and is paid down, it shows that you have "unused" credit- a good thing. i.e. you are not "maxed out" on your borrowing ability. Do not create new accts., however, as they can drive down your score.
4. an inquiry will never show up as "denied"- only that you did apply.

re: Home Equity Lines of Credit (HELOC's)
Can be a great idea- they're tax-deductible, have low rates and minimal documentation if your credit's good-- but make sure you get a no-closing-cost loan. shop in the business section of your newspaper. major banks usually have good deals.

Sorry for the long post- hope this helps!
 

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DCNSX said:

1. inquiries posted usually within say 5 business days at different lenders will be treated as "one" inquiry, and should have a minimal effect on your score.
DCNSX, good post; however I still want to point out that this isn't always the case.

I've seen many credit reports that show all activity, no matter what. It's usually what the requesting company pays that determines the LOD. Sometimes the details that can be pulled are a little over the top.

Either way, not that it really matters, I just want to make sure that people know that it is possible for ALL inquiries to show up. Like you said, stick to 3, and the majority of people will be fine.

Time to go home.......
 

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Jenn,
This wont help in this issue but look at it this way. Heaven forbid and you don't get funded for the second Liz, you wont have a hard time giving up your spot to some chap down the line now would you? I'm not implying that you'd sell it, just simply let somebody take over.
cheers,
 

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Sorry i'm a late comer to the thread, but I have to strongly concur that a HELOC's a GREAT idea for those wanting to purchase outright - total flexibility as far as repayment term and monthly $$ plus you can get UNDER PRIME as I did and (as already mentioned) the federal tax deduction is awesome. No additional credit hits, same as cash buying power, yada yada, its so good for so many reasons.
 

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jahwerx said:
Sorry i'm a late comer to the thread, but I have to strongly concur that a HELOC's a GREAT idea for those wanting to purchase outright - total flexibility as far as repayment term and monthly $$ plus you can get UNDER PRIME as I did and (as already mentioned) the federal tax deduction is awesome. No additional credit hits, same as cash buying power, yada yada, its so good for so many reasons.
That's all true, but you have to consider at least one other thing. What if you plan to move or need that HELOC money for something else?

Example: I have $50k available to me on a HELOC. I could write a check for an Elise and pay it off at a low rate. But ... I am thinking about moving again in a year or two and I would like to have the HELOC money available for use as a down payment on my next home. If I use $45k of it, that'll leave me with $5k to put down (until my current home sells). I know that people can get "bridge loans" or you can coordinate settlements, etc. But when a great house comes on the market -- you sometimes don't have time to play around. I will never be one of those people who sells their current home first and then starts looking for a new home -- because you may not have much to choose from. I also will never move to a temporary apartment -- way too much moving and trouble.

So .. that's the reason I got my HELOC in the first place. That & for the unexpected emergency. If you get a $40k car loan & keep your $50k HELOC -- you have $90k of borrowing power. If you only use the HELOC, you're limited to the $50k and you've used it up.

Another clearer explanation might be this:

You use your HELOC on a car and then move to a new house that needs $20k in repairs. You've sold the old house and your Lotus is now paid for....but you're cash poor.

You get a car loan and save your home equity. You move to a new house and you have $50k in the bank from the equity from the sale of your old house. You have plenty of money for home repairs and you can always pay off the car early with the remaining $30k of cash.

Bottom line:

Can you get an acceptable interest rate for the car?
Do you want to use your home to buy a toy?
Are you disciplined enought to pay off the car within 5-6 years?

Just because the HELOC may give you 30 years or an indefinite time to pay off the car doesn't mean you want to take on a 30 year car loan, right?
 

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Discussion Starter · #26 ·
Well Folks, I have to say Im really not very happy with Peoplefirst.


I applied with them last night and they did call me back within 15 minutes, with a MILLION questions. Granted, I dont mind answering questions, but these IMHO were a little much. The first call back was relatively simple, but I could tell I wasnt going to be happy with the situation when they started asking me if I had someone else in my household to use as a co-signer!!!!
I havent been asked that since I was 19 years old and purchased a $23,000 miata. BTW, I purchased that miata WITHOUT a co-signer and paid it off just fine. Then they wanted to know if I would take less than the amount I asked for. I said, well I wouldnt have asked for that amount if I didnt need it. I guess you need to ask for more than you need to get what you want? WTF?

They called back again and let me know I WAS approved for the loan....IF i show them all my liquid assets.

They want to see proof of all my stocks, bonds, savings, checking, etc etc. They wanted to know what I had in each account respectively. They also wanted all the information on my 401K, who is it with? How much money is in it? How vested am I? etc. WTF!

Ive never in my life been asked to give all my personal information like that...401K etc etc and Im NOT going to give them all that information.


I asked for $39,000, not a friggin house loan!

About me,

Im 30 years old. I applied single. I make over $50,000 a year. I have NO house payment and for all intents and purposes, I have no bills.

I have one credit card with a relatively low limit of $4000. I use it for internet purchases. I pay it off monthly.

I have ONE car payment for $150 a month.


My credit history includes over 5 cars and one boat ALL of which have been paid off in a timely fashion thru direct draw from my account. Some loans I paid off a little early.

I have never had any black marks on my credit. I have no bills. ...and these guys want a plot to my backyard and the combination to my house safe to make sure they can find my hidden treasures should I default? Im NOT giving them my retirement 401K info and my bonds, stocks info etc.


Peoplefirst isnt for me.

I'll be waiting for my bank to call me back today and just pray that they dont balk at a car they're not familiar with which is the only reason I can see why they'd turn me down.

With regards to the second car. If I cant get it, its really up to Chris Constantin and LOA what happens with that. I dont mind helping someone out, but I dont know how LOA has their list structured.
 

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Hans Stuck said:
That's all true, but you have to consider at least one other thing. What if you plan to move or need that HELOC money for something else?

Example: I have $50k available to me on a HELOC. I could write a check for an Elise and pay it off at a low rate. But ... I am thinking about moving again in a year or two and I would like to have the HELOC money available for use as a down payment on my next home. If I use $45k of it, that'll leave me with $5k to put down (until my current home sells). I know that people can get "bridge loans" or you can coordinate settlements, etc. But when a great house comes on the market -- you sometimes don't have time to play around. I will never be one of those people who sells their current home first and then starts looking for a new home -- because you may not have much to choose from. I also will never move to a temporary apartment -- way too much moving and trouble.

So .. that's the reason I got my HELOC in the first place. That & for the unexpected emergency. If you get a $40k car loan & keep your $50k HELOC -- you have $90k of borrowing power. If you only use the HELOC, you're limited to the $50k and you've used it up.

Another clearer explanation might be this:

You use your HELOC on a car and then move to a new house that needs $20k in repairs. You've sold the old house and your Lotus is now paid for....but you're cash poor.

You get a car loan and save your home equity. You move to a new house and you have $50k in the bank from the equity from the sale of your old house. You have plenty of money for home repairs and you can always pay off the car early with the remaining $30k of cash.

Bottom line:

Can you get an acceptable interest rate for the car?
Do you want to use your home to buy a toy?
Are you disciplined enought to pay off the car within 5-6 years?

Just because the HELOC may give you 30 years or an indefinite time to pay off the car doesn't mean you want to take on a 30 year car loan, right?
All excellent points; and I think the most pertinant is the point of discipline. Let's face it, if you are an exiting homeowner and have built up a fair amount of equity and qualify for HELOC which won't put you underwater even if you were to max it out, it proves that you've got a fair amout of discipline already ;)

I'm certainly not advocating taking a 30 year loan out to pay for a car - that's way too ghetto, BUT in the case of an emergency cash flow situation, its nice to know that one CAN reduce payments for a period of time without having to sell off assets.

I'm at the point where I'm in a residence where I anticipate I'll be for the 'foreseeable future", so I was going in with that perspective. I 100% agree - all bets are off if you are actively house hunting. Hey - at least you'll be house hunting in an Elise! (or was it an S2000?)

Regards,
Josh
 

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Genjuro said:
[BUpdates to credit reports take around 45 days on average. Don't worry about unless it stays on there...
[/B]
No - it has been very up-to-date - both times I checked, it showed the balance at the close of my monthly statement, for the previous month.
That is - it seems that citibank is reporting my balance every month exactly at the statement close time (before I've even had a chance to pay for that month), rather than, say, every month one week after the statement close date.

This was not the case with my other cards. They (correctly in my opinion) showed 0 balance, even though I was using them (and paying them off promptly) as well...
 

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I am a finance mgr at a car dealership.
I can give our customers instant approvals for people up to 50k with 3-4 banks.
I have fixed loans for 5yrs low as 3.45 percent.
You should contact your dealerships and ask if they can help.
We can usually get money cheaper than the average person.
Buyer beware dealerships can mark up your rate. Get a credit report and call a few credit unions and ask the lobby rate prior to going to the dealership.

If you have problems getting the loan for #2 put 50% down on each and finance both banks love equity!

chris
 

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Discussion Starter · #30 ·
Im all for any loan where I DONT have to tell people what I have in my 401K... good lord! :rolleyes:
 

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CHRISN said:
I am a finance mgr at a car dealership.
I can give our customers instant approvals for people up to 50k with 3-4 banks.
I have fixed loans for 5yrs low as 3.45 percent.
You should contact your dealerships and ask if they can help.
We can usually get money cheaper than the average person.
Buyer beware dealerships can mark up your rate. Get a credit report and call a few credit unions and ask the lobby rate prior to going to the dealership.

If you have problems getting the loan for #2 put 50% down on each and finance both banks love equity!

chris
This may be a little off topic (even more off topic), but how do you become a finance manager at a dealership? I'm an attorney in Maryland but I'm thinking of moving to Arizona, New Mexico, or Colorado. Since there are many car dealerships, I figure I could find work if I were an auto finance guy. It's not easy to relocate as an attorney because I'm not yet licensed to practice law in other states.

I love cars and I love finance -- so I am thinking of a career change. Maybe temporary or maybe permanent. I hear there is some auto finance school that dealerships can sent you to...to learn the ins and outs.

Can you tell me how you got into it? And can you tell me how I can get into it?

I did pass the Bar exam, so I'm no dummy. I can learn. I wasn't born knowing how to defend criminals....so anything is possible.
 

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RE: multiple credit inquiries

Glenjuro, you're correct, any and ALL inquiries will show up. But generally if they are done in a short time-frame (as opposed to spread out over several weeks/months) there will be a smaller adverse effect on your credit. Remember that when you apply "once" on-line or at a dealer, that they may be submitting MULTIPLE credit inquiries on your behalf. I would ask before submitting an application: Are they the direct lender or will they be making multiple inquiries? So that's why you want to apply to no more than three.
 

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Jenn,
The 401K stuff is absurd! What's next your first born? How about a local plain vanilla mom and pop shop bank/credit union? I've had really good luck with them recently, things are bad enough that they are desparate for business.
good luck.
 

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Hans Stuck said:
[
I did pass the Bar exam, so I'm no dummy. I can learn. I wasn't born knowing how to defend criminals....so anything is possible. [/B]

So Did Bill Clinton and Richard Nixon to name a few! :p
a "non lawyer" Chris
 

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financing

Hey Everybody(Especially Jenn),
I have already put everything into place to do all of the financing through Chase Manhattan Bank. I have exceptional rates for excellent credit customers. Let me know if you have any questions about financing. I don't think that I have posted on this board before but I think many of you know who I am. let me know if you need anything.

Chris Constantin
 

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Hey Chris,

Any word on racing stripes (Type-25 please:D )?
If yes would they cause any delay?
 

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Discussion Starter · #38 ·
Re: financing

chrislotusatlanta said:
Hey Everybody(Especially Jenn),
I have already put everything into place to do all of the financing through Chase Manhattan Bank. I have exceptional rates for excellent credit customers. Let me know if you have any questions about financing. I don't think that I have posted on this board before but I think many of you know who I am. let me know if you need anything.

Chris Constantin
Chris, I appreciate it. I may have to give you a call. I think we've decided to go ahead and order the second one...the bank called today and while they wont commit to the loan because I dont have a VIN, they did tell me that the Debt to Income was just fine and do-able. I may in fact call YOU and go thru you because I dont like the rates of my local bank.


PS, start posting over here! :)

Thanks
Jenn
 

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Give me a call and let me know what you need. I think I can help you out. I am trying to keep somewhat current with all of these boards but it is tough. I spend a good majority of my day working deals on pre-owned BMW's and with the new Lamborghini coming out it is a flurry of stuff going on around here. Please keep in touch. Also, I have to have the specs on your second order by tomorrow! I have not heard from George yet so could you give me a call if you have a little bit of time. If I don't hear from you I am going to call up your old friend Paul Spruell and sick him on you:)

Chris
 
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