Don't Buy a Car - or Did You Already Buy One?
How a New Car Payment Reduces Your Purchase Price

Suppose you earn $5000 a month and you have a car payment of $400 per month. At current interest rates (approximately 3-4% on a thirty-year fixed rate home loan), you would qualify for approximately $55,000 less than if you did not have the car payment, due to your income to debt ratio. 

Even if you feel you can afford the car payment right now, mortgage companies will approve your mortgage based on their lending guidelines, not yours. Do not get discouraged, however. You should still take the time to get pre-qualified by a lender.

However, if you have not already bought a car, remember one thing: Whenever the thought of buying a car enters your mind, think ahead. Think about buying a home first. Buying a home is a much more important purchase when considering your future financial well being.
Gretta Sheffer Minnema
Gretta Sheffer Minnema
10791 Los Alamitos Blvd Los Alamitos CA 90720