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Taking out multiple loans simultaneously is not so common an occurrence for those who are looking for big money; however, if your starting your life fresh, you may be thinking to apply for the car loan and mortgage loan together. If this is an option you've been considering, you first want to learn of what you can expect from this type of endeavor. For some it may work perfectly, while others may not find it so desirable. Let's find out which applies to you.

Why It May Work for You

If you are already on the market for a new home and vehicle then taking out both the car loan and mortgage loan at the same time may be beneficial. Probably the biggest benefit of taking this route is being able to work with one company to get it all done while possibly taking advantage of a discount for your auto loan as a result of buying your house through the same company.

Also, an option that works well for some borrowers who are refinancing a home and buying a new vehicle is the cash out refinance. In this case, if you owe money, you can refinance for the amount you owe plus the amount you want to pay for the car, the latter of which will be given to you in cash. This brings about an interesting twist to taking out multiple loans.

Why It May Not be Such a Great Idea

One reason that many borrowers would prefer to stay away from taking out multiple loans - especially if it's both the car and mortgage loan - is because it's so easy to get declined or be forced into a higher interest rate. Most creditors are looking to make sure that you have sufficient income and can prove that you manage debt responsibly before you'll be considered (your debt-to-income ratio must fall should be less than 36 percent).

Also, because you're applying for two lines of credit, you may suffer the negative impact of having two major inquiries on your report, which can lower your FICO score temporarily. Because the process can negatively affect your credit, some feel that it's just not worth it to take them on at the same time.

Taking out multiple loans can be pretty overwhelming, so before you agree to obtain both the car and mortgage loan, conduct plenty of research and weigh all of your options, and be sure to search for the best car loan available.

Buying a car can be a challenging prospect, but it's even more difficult when thinking about how to negotiate a car price. The good news, however, is that there are ways to make it easier, including entering the dealership with confidence. Let's look at a few other tips that can make the process simpler.

• Know the Invoice Price - When thinking of buying a car, it's always a good idea to find out the invoice price before attempting a negotiation. Since the invoice price is lower than the sticker price, you can get a better deal by negotiating up from it. Also, it's good to learn of any discounts, rebates, or incentives available. The more you know before stepping into the dealership, the better your chances will be of negotiating a great deal.




• Don't Negotiate Monthly Payments - When you enter a dealership and speak with salesman about the vehicle you're interested in, he will normally ask you what monthly payment you would like to make. This is a strategy to get you financed for a vehicle that's more expensive than what you would like to spend, and at a higher interest rate. So instead of accommodating this practice, it's better to negotiate a car price by looking at the total price you're willing to spend. This way, you won't be roped into paying thousands more than you intended in interest and other fees.
• Shop Around - Another great way to make sure you're getting the best deal when buying a car is shopping around for prices. You may be able to negotiate a car price you're proud of at one dealership, but you may be able to go even lower at another one. So while you may be excited about the price you've haggled, try shopping around a little bit more before settling in on a vehicle.

It's not the easiest thing to negotiate a car price, but if you take on the above tips with confidence, you'll find that buying a car is not as difficult as you once thought it was.

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