Confessions of a Mortgage Girl: What Your Lender is Really Thinking When You Show Up in a New Car
Picture this: You pull up to our first meeting in a gleaming new Mercedes. It's gorgeous, and yes, I'll probably compliment it – but inside, my mortgage brain is already doing the math.
Here's what's really running through my mind (and trust me, after 23 years of mortgage lending, I've seen it all):
"That's about $750 a month that could have been going toward your down payment." Look, I get it. Life is short, and nice cars are amazing. But here's the real talk – that $750 monthly payment could have been $9,000 in your down payment fund this year. In the Dallas market, that could be the difference between getting your offer accepted or watching your dream home slip away.
"Time to talk about credit inquiries..." That shiny new car means we'll be having a conversation about credit inquiries and new debt. Here's what most people don't realize - we'll need to document and explain every inquiry on your credit report, even right up until closing. And that new auto loan? It will absolutely factor into your debt-to-income ratio, which could affect how much house you can qualify for. A slight change in your ratios could mean the difference between getting that dream kitchen or settling for laminate countertops.
“I wonder if they know my car-buying golden rule?" Here's one of my favorite pieces of advice: If you're planning to buy a house, hold off on that new car purchase for at least 12 months before applying for a mortgage. Why? That car payment directly impacts how much house you can afford. (And yes, I know that new car smell is tempting, but trust me - new house smell is even better!)
Speaking of timing - here's a little bonus tip about employment that might surprise you: Contrary to popular belief, you don't have to stay at the same job for years before buying a house. As long as you have a solid two-year employment history and can document your income, you're generally good to go. In fact, I can often close loans for folks starting new jobs - even if they haven't had their first day at work yet - as long as they'll start before that first mortgage payment is due. It's all about the documentation and timing!
The Real Talk Section: Let me share a story (names changed to protect the fabulous). Sarah and Mike came to me last year, proud owners of a new luxury SUV. Great jobs, excellent credit, but that $800 car payment meant they had to look at homes $100,000 below their original budget. The car of their dreams cost them the kitchen of their dreams.
What's a Better Move?
Keep driving that reliable older car (the one that's paid off) for another year
Put that car payment amount into a high-yield savings account
Look at less expensive vehicles (I promise your Realtor won't judge you for showing up in a practical car)
If you must get a new car, wait until after closing on your home
The Bottom Line: As your mortgage girl, I'm not here to judge your car choices (I mean, have you seen those new Mercedes interiors? They're gorgeous!). But I am here to help you get the best possible home for your budget. Sometimes that means having the uncomfortable conversations about how today's choices affect tomorrow's options.
Remember: You can always buy the dream car after you buy the dream house. But trying to do it the other way around? That's when I have to have these "mortgage girl confessions" conversations.
Want to chat about your specific situation? I'm here to help – no judgment, just real talk about making your homeownership dreams come true. Even if you did just buy that beautiful new Mercedes. 😉
