Don't Buy a Car - or Did You Already Buy One?
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.
no company name available
Gretta Sheffer Minnema
Re/Max College Park Realty
(562) 472-8929