Posted on: 27th Jun, 2012 12:48 am
Me and my husband are planning to buy a home in the next few days and we are saving money. Now my husband liked a car and went for a test drive. Now he wants to buy it. I think buying the car now may have a negative impact as we’re planning to buy a house. What say?
Hi Bollen!
Welcome to forums!
Yes, buying a car will increase your husband's debt to income ratio. Thus, it might get difficult for your husband to qualify for a mortgage. However, if his income increases in the meanwhile, then the debt to income ratio will fall making it easier for your husband to qualify for a mortgage.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Yes, buying a car will increase your husband's debt to income ratio. Thus, it might get difficult for your husband to qualify for a mortgage. However, if his income increases in the meanwhile, then the debt to income ratio will fall making it easier for your husband to qualify for a mortgage.
Feel free to ask if you've further queries.
Sussane
Speak to a mortgage loan officer and determine if you qualify for both the car loan and the mortgage loan.
If you qualify for both, no need to wait.
If you qualify for both, no need to wait.
In addition to changing your debt ratio, your FICO scores will be reduced too, because the automobile lender pulled your credit.
That's two reasons it's a bad idea - wait until after you've purchased your home.
That's two reasons it's a bad idea - wait until after you've purchased your home.
