How to Destroy Your Home Purchase

Okay, so you're moving into your new house. We're moving in to your new house. How exciting. You're under contract. Everything is looking fantastic. But guess what? You need furniture and that car, that car, oh my gosh, I need a new car, so bad, and maybe not even a new one, but a used one.

Well, stop, do not go buy any furniture, and do not go buy that car, unless you're paying cash. I don't want to see any of it. There's a reason for that. So if you go out and you purchase a brand new car, you're using credit. If you go out and you use credit to purchase new items for the home, you gotta make it a beautiful home, right? But not during the transaction. So what that's going to do if, when you spend $5,000 on your living room set, or you spend $27,000 on that new car or that new used car, you're not going to get the home now. You have nowhere to put your furniture because you don't have a house.

So the reason for that is your credit. Your mortgage lenders are always checking your credit. They're making sure that nothing has changed. They want to make sure that you have a job, that you're able to pay the loan, that your debt to income ratio is for real now. So if you change that, you go out and you buy some furniture on their credit, you go out and you open up a line of credit in order to purchase furniture, meaning you open up a new credit card, if you go out and you buy a new car and you're having a loan, all of that is going to impact your ability to purchase that house. So if you have not done it yet and you are planning on purchasing a house, wait, do not buy that new car. Unless you're paying cash for everything, and you have enough cash to close on that home as well. Because what's more important: what you're driving to work or where you lay your head at night and where you're spending that's a question that you need to ask yourself.

So if you want to rent for the next 10 years, while you get that car note paid off. Let's call it, the next five years, get that car note paid off and then purchase you can certainly do that. I don't suggest it, because in previous videos, you're paying yourself every time that you purchase a home. You're paying yourself every payment. You're not doing that with a rental. So you're not only spending that $2000 which could have been used for your mortgage, you're spending it on a rental. Now you have another $600 monthly car payment. Don't do it. Don't get any credit during the transaction.

So what did we learn today? Listen to your realtor. Get you a good one. Okay? Interview multiple people before you decide on who to go with, I don't care if she's your cousin. I don't care if I'm your cousin. You should be interviewing not saying "you've got it". Now call me 612-670-9920, I'll walk you through the entire process. We sit there and help our clients help themselves. We want to make sure that you're taken care of. Thanks. See you soon.