Don't let a new car ruin your dream of home ownership!

Vanessa and Julien decided  it was time to leave their apartment and buy a house. They are excited about becoming home owners. 

Bye-bye rent! Following the advice of some friends, they secured a pre-approved mortgage before beginning their house hunting for a new home.

With a solid pre-approval  in hand, they find their dream home.  They enter into negotiations and their offer is eventually accepted; they are almost at the finish line. A colleague, who had recently purchased a home, told them that they had an excellent experience working with Planipret and recommended they meet with me.  They follow his advice and we set up a meeting.

Between securing their mortgage pre-approval and making the offer on the house, Vanessa buys a new car for herself… Big mistake!  Their mortgage application now looks very different, and they can no longer be approved for the same amount as was previously indicated on their pre-approval application. 

The car Vanessa had purchased reduced their borrowing capacity by $50 000. Their loan request is refused. As a result of this purchase, the only available options now open to them are: buying a less expensive home or lowering their other monthly debts.

In the case of Vanessa and Julien, her parents give her the money so she can pay off her student loans and decrease her debt load. 

With less monthly debts in their file, they can now buy their dream home. Tip: While you are in the process of a mortgage application(purchase, refinancing, renewal, etc) it is important to not take on any additional debt.  If you do so, you may find yourself in for a big disappointment!            

If you know anyone in the same situation as Vanessa and Julien, send them this article.  They will appreciate this helpful tip!

The content of this Website is protected by copyright wich is the exclusive property of Planipret  Mortgages- Mortgage Brokering Firm