Plus-5
What If You Need to Buy a Car Before Closing?
Life doesn’t always cooperate with your closing schedule. If an unavoidable financial change comes up while your mortgage is in process, talk with your lender before making a decision. They can help you understand how different options may affect your qualification and what will need to be documented.
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Read the transcript
You're under contract on your dream home, the loan is moving along...and your car dies.
You need a car to get to work, so "just don't make any major financial changes" isn't very helpful advice.
This is when you call your lender before you make a decision.
You may have enough room in your qualifying ratios to take on a car payment. You may have enough cash to buy a car outright, or make a larger down payment and keep the monthly payment lower. But using cash can also affect the money you need for closing or reserves.
Your lender can help you compare options and tell you how much room you actually have.
And call early. A new loan or a change in your bank balances may need to be documented, and your loan may need to be reevaluated before closing.
The goal isn't to put your life on hold. It's to make the change in a way that keeps your home purchase on track.
And remember - it's always okay to ask. We're here to help you get home.