10/30/2026
The real reason is not just because you have a loan.
It’s heavily dependent on how large that loan is and what the payment is. Lenders care most about what’s called your debt-to-income ratio (DTI). This includes the proposed mortgage payment and all monthly debt you have divided by your pre-tax income. Therefore, a large car loan can drastically change buying power because it will increase that DTI.
On the contrary, if you make $15,000/mo and your car loan payment is only $200, it likely will not have a significant effect on your qualification unless your mortgage payment is $7000+.
When all is said and done, you should absolutely consult with a lender before purchasing a home if you have a goal of purchasing a home.
Joshua Botsford
NMLS 2089905
[email protected]
(503) 407-2490
