Thinking of buying a new home? Then put that new car on hold! Doug Rogers of Bayou Properties shares a story of exactly what making another major purchase while home shopping can do. Lenders advise putting ALL major purchases on hold until the home loan is final, including furniture, vacations on credit, etc. It's not worth risking that new home you're looking to buy!
In his defense, the new car was sweet. A Car and Driver 10Best, the BMW 3 series was worth a second glance. The exterior was a work of art, and the interior had enough leather to make a cow nervous. So why did this pretty car cause my stomach to turn? Because my pre-approved buyers just pulled up in it!
Last summer I spent a couple of weeks touring homes with this family. The budget would be tight, but they could manage to buy a nice home in their target area. Then they buy a Bimmer...
The roughly 650 dollar payment destroyed their debt ratios (debt/income). Due to the car purchase they then qualified for a far more modest home. We essentially went from looking at granite to old Formica. Any agent will tell you this is a tough transition.
The sad part is the car dealer told them the purchase would not impact their house hunt. "This debt won't show up for several months" or something along those lines. Guess what? It did...
After learning what their revised budget affords, my buyer signed an extension on his apartment. The moral of the tale is to not make any major purchases when house hunting. Absolutely need new transportation? Talk to your mortgage professional in advance.
Ready to take the next step toward home ownership? Call Doug Rogers with Bayou Properties Realty (318) 613-1994. Or click www.LouisianaHouseHunter.com
Bayou Properties Realty
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