“Major Purchases Prior to Buying a Home”
Hey Joe
Just a quick question for you, I know I'm not supposed to make any major
purchases during the mortgage process. Should I wait to buy a car after
we close on a new house? AC crapped out in my car of course when I'm
moving to Florida.
The simple answer most of time would be DO NOT make any major purchases
prior to buying a home. When I say most of the time, the new payment
will affect the debt ratio but if the income is strong enough a new
purchase like this won’t matter.
Unfortunately a lot of clients react quickly and might go ahead and buy the new car
even though I have already recommended “NO Large Purchases”.
In this case however it would have been a problem so I recommended that
this type of purchase be made after the home closes. They are going to
do just that and wait.
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