24 Apr Will buying a car mess up my chances of buying a house?
Buying a car can indeed affect your ability to purchase a house, although it depends on various factors such as your financial situation, credit score, and debt-to-income ratio.
When you apply for a mortgage to buy a house, lenders evaluate your financial stability and your ability to make monthly mortgage payments. They consider your income, existing debts, credit history, and other financial obligations.
“If it is 24%, meaning you spend $24 for every $100 you earn, then you might still make auto payments there. However, if you’re on the verge of paying more than what lenders would consider acceptable in their ratios — 39, 40, or higher — an additional payment will regrettably push you over that threshold. Your mortgage broker will provide you all the information you require and determine whether you can afford to acquire both.”
Here’s how buying a car might impact your chances of buying a house:
