How to blow up your real estate purchase in one easy step ( Don't actually do this)

Buying a car before closing on your first home may seem like a tempting idea, but it can actually turn out to be a huge mistake. As a first-time home buyer, it's important to prioritize your finances and make smart decisions to ensure a successful real estate purchase. One of the main reasons why purchasing a car before closing on your home can be a mistake is because it can negatively impact your credit score. When you apply for a mortgage, lenders will review your credit history and score to determine your eligibility for a loan. Taking on additional debt by purchasing a car can lower your credit score, making it more difficult to secure a competitive mortgage rate or even qualify for a loan at all. Additionally, buying a car before closing on your home can affect your debt-to-income ratio, which is an important factor that lenders consider when deciding whether to approve your mortgage application. Taking on new debt for a car can increase your monthly expenses, making it harder to afford your mortgage payments and potentially putting your loan approval in jeopardy. Another reason to hold off on buying a car before closing on your first home is that it can deplete your savings. Purchasing a home comes with a variety of upfront costs, including the down payment, closing costs, and moving expenses. By spending your savings on a car, you may not have enough funds left to cover these essential expenses, putting you in a financially risky position. In conclusion, as a first-time home buyer, it's crucial to prioritize your finances and make responsible decisions. Avoiding major purchases, such as buying a car, before closing on your home can help you secure a successful real estate purchase and set yourself up for financial stability in the future. By focusing on your home purchase first and delaying other big-ticket purchases, you can ensure a smoother and more successful home buying experience.