Credit Tip You Might Not Know
here's a credit tip that you might not know. Car loans are one of the worst things that you can have.
Reporting on your credit when you're applying for a new mortgage, they make a dramatic impact on how much you can qualify for. If you have a car loan for just $500 a month, it can limit the amount of mortgage money that you qualify for by almost $100,000. Most of our clients have payments of upwards of 1500 a month, which limits them by $300,000 in mortgage money. So if you can avoid having a, car payment before your mortgage application, we highly recommend it.
Now, another really cool tip. In order to avoid this for self-employed borrowers, if you have a car loan that is a business expense, you can ask the car dealership to have that car loan in your business name only. No personal guarantee and it won't show up on your personal credit report so it doesn't impact you at all. Most people don't know this and it can make a big impact on your qualification.
Give our team a call. We're always here to help.
