Lender telling us not to buy a car even AFTER closing??

4 Replies

Buying in Nevada, scheduled to close Wednesday, already received a clear to close.  We currently have no car and are renting one until this process is complete.  I was intending on purchasing one immediately after closing, but our lender is telling us to wait at least a week (??)  Am I correct in assuming once the deed is recorded and we have the keys, we're in the clear?  My only theory is he wants our mortgage to look clean until he has the chance to sell it to a big bank (it's a small private lender), and he's only looking out for the company's interests.  Any advice?  Can a lender "take back" a loan once it's closed and the deed is transferred?

Well, if you bought a car the day after closing it would appear you Applied for the loan at least before closing of the loan which would violate documents you sign at closing, with the lender, saying you are not applying for additional debt. I’d wait 4 or 5 days anyway. 

Originally posted by @Tim Slatt :

Buying in Nevada, scheduled to close Wednesday, already received a clear to close.  We currently have no car and are renting one until this process is complete.  I was intending on purchasing one immediately after closing, but our lender is telling us to wait at least a week (??)  Am I correct in assuming once the deed is recorded and we have the keys, we're in the clear?  My only theory is he wants our mortgage to look clean until he has the chance to sell it to a big bank (it's a small private lender), and he's only looking out for the company's interests.  Any advice?  Can a lender "take back" a loan once it's closed and the deed is transferred?

 He's telling you to wait a week because you're going to go look at cars in person, or put your contact info on some website, to "think about it" a week earlier than whatever he tells you (this is 100% true, and as a lender I will not believe you if you tell me otherwise... sorry :P ), and the second you walk onto that car lot a bunch of car salesmen are going to descend upon you, deploying various lines of BS as a pretext to run your credit ("it's a soft pull" or "we just need your SSN to verify you aren't a terrorist, we aren't going to run your credit") and close you on a car that very day, and there is greater than a 0% chance you will believe what they tell you and screw everything up.

The rule is that whatever you tell homebuyers not to do, some non-trivial percentage of them are going to push it one notch farther than you tell them. Within 10 minutes of reading this Tim, you are going to be filling out your contact info on some car lot's website asking them to "hold the pickup a week but please promise you wont run my credit," aren't you? :P

The better advice would be to tell you to never buy a car... with payments.    A week is too short.   Making payments on things that go down in value is a double dumb whammy.  

Sorry, couldn't help myself. I'm seeking therapy now...  I would (and did) save up $1 or $2k. Buy the best running vehicle you can. Save up another $2k while you drive that, sell it and buy a $4k car.  Save up another $2k....  $1k and $2k cars hold their value.  A fancy one loses thousands.  You know that, but thought I'd point it out as a reminder.