[jtmccabe]

I thought that after I decided what to order, I would finally be able to sleep better. But not so. Now that my car is on the way, I can't stop thinking about things that might go wrong. Now I'm worried about financing. My original plan was to lease, but with the high lease rates for the early '08 models, that's not looking too attractive. So I have decided to buy.

I pulled a credit report on myself today and my FICO is 801. If I get the loan I want, I will have two car payments and my debt load (debt payments/gross income) will be 33.7%. But that is with my wife paying half of most of the bills, and I am buying the car myself. If they look at my credit report they will see that my mortgage payments, etc. are double what I actually have to pay. So do I put my total household income into the credit app, even though the car will only be in my name? It just asks for "income".

Do they typically even look at monthly debt payments, or just FICO scores? Am I worrying about nothing? Can I just rely on my good FICO score alone?

Also, I'd like to get approved for a little more than I need (around $52k) for accessories, taxes that might be higher than anticipated, etc. But it's already a big loan, so would I be pushing my luck too much? If they decline the amount I ask for, would the bank typically approve me for a lesser amount or just decline the whole thing? BTW, the bank is USAA.

I think I'll be fine, but the paranoia has set in. I'm a little cash poor at the moment and my worst fear is that I would not be able to pull together a loan and/or a large downpayment fast enough to take my baby home once she arrives. Someone please tell me I'm crazy!

[stooken]

Good question. Good FICO score.

From my understanding, they primarily look at your credit score. Not sure if they carefully look at your debt to income ratio and etc. When I leased my 328i last month, I still had my S2000 lease on my credit report. I was still approved. I don't recall stating my income on anything. If they do ask, I would put total household income to be on the safe side. Unless, it directly asks for YOUR income.

I'm sure you can just ask your client advisor at BMW to answer a lot of these questions. They want to approve you just as much as you want to get approved.

As far as the bank approving you for a lower amount, that's typically how it works. They counter offer you with the highest they can offer.

[BMWE90]

BMW FS looks at everything. They look at your credit history and your debts. They also look at how much you're making and whether or not you actually have a history and if you've ever been late on payments. They're pretty scary.

[stooken]

Originally Posted by BMWE90

BMW FS looks at everything. They look at your credit history and your debts. They also look at how much you're making and whether or not you actually have a history and if you've ever been late on payments. They're pretty scary.

Credit reprot doesn't show income? It only shows what you owe, how much, monthly minimum payment & everything else you mentioned. Only way to verify income is paycheck verification. Just state a higher income. Come to think of it, I do think they ask for individual income NOT household. Just make sure the income you state makes sense with the job title you put down.

Same goes with applying for credit cards. They don't verify income. Always overstate your income on credit card applications for better chances of approval.

[BMWE90]

Originally Posted by stooken

Credit reprot doesn't show income? It only shows what you owe, how much, monthly minimum payment & everything else you mentioned. Only way to verify income is paycheck verification. Just state a higher income. Come to think of it, I do think they ask for individual income NOT household. Just make sure the income you state makes sense with the job title you put down.

Same goes with applying for credit cards. They don't verify income. Always overstate your income on credit card applications for better chances of approval.

yup you are correct. What I meant was that they look at how much you say you make on the app. BUt like you say anyone can just state their income higher than it actually is.

[stooken]

Originally Posted by BMWE90

yup you are correct. What I meant was that they look at how much you say you make on the app. BUt like you say anyone can just state their income higher than it actually is.

Just kidding! How is the car Kenny?

[BMWE90]

Originally Posted by stooken

Just kidding! How is the car Kenny?

It's great! Very fun to drive. Hoping to take it skiing this season. How about you?? I've probably seen your car around a few times.

[stooken]

Originally Posted by BMWE90

It's great! Very fun to drive. Hoping to take it skiing this season. How about you?? I've probably seen your car around a few times.

I would never drive my car up there. Well I guess I just don't want to rack up miles. My friend is getting a Tacoma so we'll rack up miles on that! Haha.

Car is good. It's going into MACH III next week for my rims, tires, springs and tint.

I commute b/w Mountain View and San Jose on 101 everyday so maybe you've seen me. I see a few E90s on the way home but mostly SG one's.

[phantom330]

I have a little first hand knowledge on this one FS looks at everything, they actually don't buy on credit score. Granted the rate you get on a loan is going to be directly effected by your score, approval is not. Credit history is a great thing, you can get an application scoring 800+, but the person might only have one or two trade lines to look at. Really can't tell anything from that.

Back to your original question, if you list spousal income on your application, it'll get deleted anyways unless that person is listed as a co signer.

[jtmccabe]

Originally Posted by phantom330

I have a little first hand knowledge on this one FS looks at everything, they actually don't buy on credit score. Granted the rate you get on a loan is going to be directly effected by your score, approval is not. Credit history is a great thing, you can get an application scoring 800+, but the person might only have one or two trade lines to look at. Really can't tell anything from that.

Back to your original question, if you list spousal income on your application, it'll get deleted anyways unless that person is listed as a co signer.

Would you say this is true for all banks or just BMWFS? I will finance through my own bank.

I have no problem just listing my own income, as long as they are smart enough to figure out that I am not the only one making all the monthly payments that show up on my credit report. Are they? I mean, my debt to income would be through the roof if that were true.

Based on the facts I've given, do you think I'd have any problem getting approved? BTW, my credit history is about 17 years long with something like 32 accounts all in good standing, without one late payment, ever.

[anderson007]

Not to sure about USAA, but BMW absolutly looks at debt to income ratio I have had a lady turned down with over 800 score because she had three houses in her name. Also keep in mind that with the current sub-prime market in the toilet the banks are looking for cream puffs for the best rates

[anderson007]

just saw your post the bank will only assume you pay half the mortage if your spouse is also on there with you.

[phantom330]

Originally Posted by jtmccabe

Would you say this is true for all banks or just BMWFS? I will finance through my own bank.

I have no problem just listing my own income, as long as they are smart enough to figure out that I am not the only one making all the monthly payments that show up on my credit report. Are they? I mean, my debt to income would be through the roof if that were true.

Based on the facts I've given, do you think I'd have any problem getting approved? BTW, my credit history is about 17 years long with something like 32 accounts all in good standing, without one late payment, ever.

Based on the minimal information, I wouldn't think it would be a problem. Home ownership is a big plus, especially if you've been at the same address for a while. I would imagine most banks look at the same information, sometimes if a deal is a little borderline having some stability (residence and job) makes it do-able, since you know you'll probably be able to find the car, should things go bad. Hope this helps, based on the info you've got there, I wouldn't worry. Plus your credit report is going to show that your mortgage is co signer, so they have to know there is another source of income there. Worst case can always put your spouse on the loan if it's a no. Money down is also a plus. Good luck!

[DaveStinsman]

You want to borrow the whole $52,000? For how many months? I only want to borrow $30,000 for 60 months and my payments will be mid to upper $500
a month. Depends if the interest rates drop again next month. Still speculating. Check with your lender they may require you to put so much down. Good Luck.

[stooken]

Originally Posted by jtmccabe

Would you say this is true for all banks or just BMWFS? I will finance through my own bank.

I have no problem just listing my own income, as long as they are smart enough to figure out that I am not the only one making all the monthly payments that show up on my credit report. Are they? I mean, my debt to income would be through the roof if that were true.

Based on the facts I've given, do you think I'd have any problem getting approved? BTW, my credit history is about 17 years long with something like 32 accounts all in good standing, without one late payment, ever.

So are you going through BMWFS or financing through your own bank? When you apply through BMWFS, they have to go through a bank as well.

If you go directly into a bank, you can just have them run your credit along with your stated income and they will tell you how much you're approved for. It's called "Auto Shopping". Say you apply for $52k, if the bank see it's too much, they will counter offer with a different amount. If it's real bad, they might ask for copies of your paycheck as income verfication. I've seen people take paychecks or paystubs from other people, copy their name on it and submit that for approval. How? I worked at a bank for 5 years. Not saying you should do that but it just shows that NOT EVERYTHING is verified. Make it look pretty and they'll approve you unless your credit is down right nasty.

You would probably get a better rate doing it through BMWFS. They usually offer interest rate deals if you finance directly through them.

Your best bet is just go just give it a shot. A lot of lenders have different lending criteria so you'll never know. One bank may deny you and another will approve you.

Don't worry too much about your mortgage statement. They'll see that you're married or have a co-signer on the loan. And when they look at your tradelines, normally they just caculate your total MINIMUM monthly payment and run that against your income for the debt to income.

[TYW]

$52k auto loan? Wow....

Assuming your home has increased in value, why not look into a home equity loan? Rates are lower than BMWFS or Bank auto loans and the interest paid on the home equity is usually tax deductible.

[anderson007]

BMW elite rate just dropped to around 6.5%, which is much less than my home equity line which I just got at around 8%. You are correct in the fact that the HELOC is tax deductable. So not to sure of which would be the best way to do it

[stooken]

Originally Posted by anderson007

BMW elite rate just dropped to around 6.5%, which is much less than my home equity line which I just got at around 8%. You are correct in the fact that the HELOC is tax deductable. So not to sure of which would be the best way to do it

I think HELOC rates are supposed to drop 0.50%? Remember hearing that somewhere. Maybe it was the interview with Greenspan.

[jtmccabe]

Thanks for all the replies. I have owned the home I'm in for 3+ years, and my wife is on both our mortgages. Since we already have two mortgages, I don't want to do a HELOC. Besides, USAA is currently offering 4.99% on car loans up to 6 years, and 5.49% for up to 7 years.

Yes, I do plan to finance the whole $50k or so. I know it's not the smartest thing I can do, but I've been wanting this car (and/or an E46 M3) for years and I am all out of patience. The car will arrive right about the time that I will have finished paying off $60k in credit card debt. Needless to say, there was lots of self-deprivation involved with paying that debt. With that load off my back, I am ready to start living! We have no kids and probably won't anytime soon, so now is the time to finally get the car I've always wanted.

Yes, going $50k into debt is a funny way to celebrate paying off $60k in debt. But car debt is a hell of a lot safer than credit card debt. By that I mean that I could sell the car and get out from under the loan for a few kilobucks, if I had to.