I am hoping to be able to qualify for a purchase of a home by spring of this upcoming year, preferably to take advantage of the $8,000 tax credit, and as my current lease is up in May, the timing is perfect.

I have not owned a home for approximately 5 years after a divorce, but previously was a homeowner and at the time of that previous home purchase, (approx. 1993) assets such as vehicles that we owned were taken into consideration and we were questioned over one of our vehicles that was older and the bank was concerned that we would have to add a car payment/vehicle purchase soon after the purchase of the home.

Is this something that is still today taken into consideration when applying for a mortgage? I have an older vehicle, approximately 10 years old, but in good condition and I work out of my home, so I don't put a lot of miles on it. If this is something that is going to be detrimental on a mortgage application, I am considering replacing the car now with a newer car and a small car payment (approx $200) but am also concerned that this purchase and subsequent car loan would also be considered a negative because I won't have had the car loan and made payments for more than 3-4 months.

Which scenario, to purchase or not to purchase, would be the best when applying for a mortgage prior to April 2010?

Any information or feedback is appreciated!