Which would you rather have? Lately I’ve been having people come to me who want to qualify to buy a new home but are hit with a huge surprise that they don’t qualify because they just bought a brand new truck. This is a common mistake many people make before they try to buy a new house. It isn’t always a truck or car but just a big ticket purchase that comes with a high monthly payment and disqualifies them from otherwise being approved for a new home loan because their debt to income ratio is too high. Your debt to income ratio is the total of all monthly credit reporting debts including mortgages with property taxes and insurance divided by your total monthly income. You always want to keep your debt to income ratio under 45%.

Remember, buy the 3 bedroom house before you buy the 3 bedroom truck. You can always buy the truck afterwards. Contact me to learn more.