TOYS AND BUYING A HOME

Buying a home is exciting — but your other loans and “toys” can dramatically change how much you qualify for.

Before making a big purchase, it’s crucial to understand how lenders view your debts.

Let’s make it simple 👇

1️⃣ Unused credit still counts

Many borrowers don’t realize lenders treat unused lines of credit as if they’re fully used.

This means you can be penalized even with a zero balance.

✔️ lenders assign a payment based on the credit limit

✔️ higher limits = higher calculated payments

✔️ this reduces your mortgage qualification

Zero balance does NOT mean zero impact.

2️⃣ Big vehicle payments shrink your buying power

Large truck, SUV, RV, or power-sport payments can drastically lower your approval amount.

Even one payment can restrict your qualification.

✔️ lenders include the full monthly payment

✔️ this increases your debt ratios

✔️ which lowers the mortgage amount you’re approved for

Your vehicle payment is often the deal-breaker.

3️⃣ Stretching vehicle loans doesn’t always help

Extending a car loan sometimes reduces the payment — but not always enough.

Lenders still evaluate how the debt affects your total monthly obligations.

✔️ longer terms may help reduce payment

✔️ but interest costs increase

✔️ and it can still block your mortgage approval

Lower payment ≠ better financial position.

4️⃣ Lines of credit are treated differently by different lenders

Banks often use rigid formulas when calculating payments on unsecured lines.

Mortgage lenders may use more flexible methods.

✔️ some calculate 3% of the limit

✔️ others use actual balance

✔️ others use interest-only estimates

The lender you choose matters more than you think.

5️⃣ Buying toys before your mortgage hurts you

New loans for boats, trailers, ATVs, or vehicles can eliminate your ability to qualify.

Even if you feel comfortable with the payment, lenders see the risk differently.

✔️ new debt reduces qualification

✔️ raises your debt ratios

✔️ limits your mortgage options

The timing of your purchases is critical.

6️⃣ Always talk to a mortgage professional first

Most qualification issues are preventable when you get advice early.

We help structure your finances so nothing gets overlooked.

✔️ we review debts before you apply

✔️ we calculate your real approval amount

✔️ we help plan big purchases strategically

The earlier you involve us, the more options you have.

💬 Final Thought

Your debts and “toys” impact your mortgage more than you may think.

Before taking on a new payment, talk to The Frontline Mortgage Group — we’ll help you avoid surprises and keep your buying power strong. 💬