|
Don't Buy a Car
When an individual’s
income starts growing and they manage to set aside some savings, they
commonly experience what may be considered an innate instinct of modern
civilized mankind.
The desire to spend
money.
Since North Americans
have a special love affair with the automobile, this becomes a high
priority item on the shopping list. Later, other things will be added and
one of those will probably be a house.
However, by the time
home ownership has become more than a distant and hopeful dream, you may
have already bought the car.
It happens all the
time, sometimes just before you contact a lender to get pre-qualified for
a mortgage.
As part of the
interview, you may tell the loan officer your price target. He will ask
about your income, your savings and your debts, then
give you his opinion. "If only you didn’t have this car
payment," he might begin, "you would certainly qualify for a
home loan to buy that house."
|
