The Debt that Causes the Most Trouble ;)
If I were to pick out the one debt that throws out the pre-approval numbers more often than anything else, it's the vehicle loan. If you look at the cost of trucks today, it's the same as a mortgage payment in some instances. When this happens I will send the client numbers to show what they could get on a home with the vehicle payment, and then without it. I'm sure I'm not wildly popular having to advise what people would qualify for without the vehicle they already have, but I have to provide you the best info for you going forward. I want you to hit your goals.
So what is my advice as we obviously need vehicles? PLAN before you buy the vehicle. Contact Nikole! I love helping people plan and this way, you will know what the numbers could look like in advance and then YOU can determine what's more important.
My last word, vehicles are depreciating assets, property is an appreciating asset. If you would like to learn more about the Mortgage Qualifying Process, please click here.
Thanks for reading!
Nikole Krupka
Edmonton Mortgage Broker