WHAT SHOULD COME FIRST — THE HOUSE OR THE CAR?
- johnathanmcquoid
- Jan 17
- 2 min read
Thinking about buying a home and a new car?
You might want to read this first.
That shiny new vehicle and its monthly payment can absolutely affect your mortgage pre-approval — and for many buyers, it can be the difference between qualifying and getting declined.
Here’s what you need to know 👇
🚗💸 A new car loan can reduce your buying power
We often see clients who apply for a mortgage pre-approval and are shocked when they don’t qualify.
Yes, the mortgage stress test plays a role, but high monthly car payments are one of the biggest reasons people get declined.
Car loans, leases, and big monthly payments reduce your debt ratios — and lenders rely heavily on those ratios when determining how much you can borrow.
📝 If you want both, timing is everything
If you buy a car before speaking with us, you may unknowingly eliminate your ability to qualify for the home you want.
But if you consult us first, we can factor the car payment into your pre-approval and help you plan properly.
Here are 5 tips to set yourself up for mortgage approval success 👇
1️⃣ Get pre-approved first
Before you start car shopping or house hunting, connect with us.
A real pre-approval tells you exactly what price range you qualify for and prevents surprises later.
2️⃣ Be realistic about affordability
A simple starting point is comparing your future mortgage payment to what you pay in rent today.
But remember — there’s a difference between what feels affordable and what a lender will actually approve.
3️⃣ Budget for more than just the mortgage
Homeownership includes:
✔️ property taxes
✔️ home insurance
✔️ utilities
✔️ ongoing maintenance
Plus, you should have emergency savings ready — homes come with unexpected costs.
4️⃣ Clean up your credit
Paying down credit cards and reducing balances can:
✔️ increase your credit score
✔️ lower your debt ratios
✔️ boost your overall buying power
This alone can make a BIG difference in your approval.
5️⃣ Avoid major financial changes during the process
Lenders want stability — so avoid:
🚫 buying a new car
🚫 opening new credit
🚫 changing jobs
🚫 taking on new loans
Anything that increases debt or changes your income can jeopardize your approval.
💡 Final Thought
You don’t have to choose between the house and the car — you just need a strategy.
With the right planning, you can time both purchases properly and protect your buying power.
If you’re considering buying a home, a car, or both, message The Frontline Mortgage Group first.
We’ll help you structure things in the right order so you don’t impact your mortgage approval. 💬