You’ve got it all under control. You have good credit, you have a great job and now you’re even getting your first house! What goes better with a new home than a new car? NOTHING. That shiny new SUV is going to be awesome parked right in the driveway. You imagine hand washing it on the weekends while chatting about the weather with your neighbors. Ahhh that American Dream!

But oh wait. Oh no. Your lender just called and your mortgage didn’t get approved!? HOW IS THAT POSSIBLE? It was supposed to be a done deal.

Here’s the thing. Your fabulous new car made the bank reconsider. Your loan pre-approval was based on the state of your credit and your debt load before you bought a car. That 5-passenger, 4-wheel-drive, success-mobile just added debt that the bank thinks you may not be able to handle- making you unable to successfully pay the loan for your home.

Taking on new debt, even for cars, furniture or other household related items, will change the state of your credit. Lenders love stability, and you just rocked the boat. (By the way, definitely don’t go buy a boat, either).

As a rule of thumb, until the deal is done, try to keep your accounts as stable as possible. Taking on more debt, getting a new job, or suddenly depositing a lot more money in your account can hurt your chances.

Have more questions? We’re happy to help! Shoot us an email or come to visit our office in your reliable, but maybe not brand-new car, to discuss how we can help make you a successful home buyer. Even if you think you may be buying 6 months from now we can help you prepare. You never know when the home of your dreams will pop up!

Dan DeCapua

Dan DeCapua is an accomplished Realtor and stand up comedian. A Real Trends Top 1,000 agent in the U.S., member of the RE/MAX Hall of Fame and has the most positive reviews of any Ann Arbor based agent on Zillow. He keeps his trophies and various other accolades in a climate controlled, subterranean vault available for viewings the third Tuesday of every month. For your Metro Detroit/Greater Ann Arbor real estate needs call (734) 730-7061 or email [email protected]