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Car Sales Are Up, but is that a good thing ?

By
Services for Real Estate Pros with Certified Mobile Notary Signing Agent NMLS #268590

Recently, I heard the news commentator announcing that car sales were up.   Wooo hoooo !   Happy days are here again but wait a minute; . . is that really a good thing ?   What does that mean ?   I had to ponder this idea because sometimes what sounds good on the surface demands further scrutiny.

Before you get all wound up, no; I have nothing against car sales improving.   An improving economy, more jobs leading to income to make such purchases and an improving public spirit are all great steps in the right direction but let's dig a little deeper; is it the right choice for YOU ?

In the mortgage industry where I live and work every day, cars are not always a good thing and please, let me explain why.   When a person comes to me for a mortgage, you know what I have to do as one of the first steps to getting them approved.   I have to pull credit.   Uh Ohhh !

I cannot tell you the number of times that I have had a client with the right income, the right job, the right property and then I see it, the WRONG car loan !   Arghhh !   If only they had talked to me first.   I know there are some fancy, high priced modes of transportation out there but really; which is the BIGGER, and more important investment; your house or your car ?

So, here's the problem.   People have been couped up all winter and they want to get out.   Their vehicle seems to have aged two years since fall when they start seeing the early spring car ads.   They just want to stop by and see the new styles, the new colors, the new accessories but they're not buying.

And then the emotional responses start to build, the test drive is a dream come true, the salesman hits you with zero percent interest and closes you out with a ridiculous trade in value and then, . . . . . OMG !   I'm on the hook for how much ?   I've got to pay that for how many years ?

Folks; don't let this happen to you.   I know some new bling, a new ride, a real show stopper would be nice but corral your excitement long enough to look at your real life needs.   A home is long term security for your family.   It is a special place of love and compassion for those who mean the most to you.   Make sure you put your priorities in order.

OK, now that we've come back to reality.   I'm not saying, don't buy a car.   I am saying, do it responsibly.   If you are thinking of doing any kind of mortgage loan in the near future, get that out of the way first.   Apply for pre approval with me before you put a new car loan on your credit report.

I am here for you and will give you the best mortgage preparation advice I have available.   I WILL NOT try to talk you out of buying a new set of wheels (with or without the car attached).   I will however, show you the facts of how a car loan could potentially affect your mortgage plans.

So, if you are thinking of upsizing your home for a growing family, refinancing to do bill consolidation, relocating closer to that new job or just want to review your mortgage health, let's talk.   You can call me, email me or stop by one of my three offices and I will help you decide what is best for YOU going forward.   That way YOU can decide for YOURSELF, . . . . .

 

Car Sales Are Up,

but is that a good thing ?

 

***** 

Deanna Early is the  Highest Ranking Mortgage Loan Originator in the state of Virginia            as scored by the ActiveRain real estate site.   She is a residential specialist and provides home loans, construction loans and lot loans as well as second or vacation home loans and investor financing.   She does both purchase and refinance loans anywhere in the state of Virginia.   She is a Nationally Licensed Mortgage Loan Originator with American National Bank and Trust at Smith Mountain Lake, Virginia.

Please visit her website at   www.DeannaEarly.com   and learn more in the Virginia Mortgage Blog

You can contact her for your financing needs at (540) 721-2349 or by email at  " earlyd@amnb.com "

The views expressed in this post are mine only and do not necessarily reflect the views of American National Bank and Trust Company.   Any scenarios presented are for illustrative purposes only and are not intended to refer to or represent any actual or specific clients, negotiations or financial transactions.

#VirginiaMortgage   #VirginiaRefinance   #VirginiaMortgageBlog   #SmithMountainLake

Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Great points, last year we bought my new Lexus... all cash... Diane's Honda CRV with a loan.... as much as I wanted all cash business was good but not that good... hence it does affect loans...good thing we are not buying a home now rather we are working on paying off the loans....Endre

Mar 08, 2016 04:25 PM
DEANNA C. SMITH CERTIFIED MOBILE NOTARY

Buying all cash is NOT an option for most folks so planning is critical.  Paying down loan balances when times are good is a smart idea.  To prepare in advance for a mortgage is the best plan. 

Mar 08, 2016 11:06 PM
Peter Mohylsky, Destin BeachPro
PMI. Destin - Miramar Beach, FL
Call me at 850-517-7098

Car loans especially those that people walk away from are a bane of my existence.

Mar 08, 2016 05:32 PM
DEANNA C. SMITH CERTIFIED MOBILE NOTARY

Walking away from debt responsibility has destroyed so many credit scores in the last decade.  People CAN recover but it takes desire, planning, hard work and sacrifices.  I help folks that are truly trying to get back on their feet make good credit decisions. 

Mar 08, 2016 11:11 PM
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Deanna. You are so right about preparation for events in the future. If a home purchase will be in the future, buying that car may not be the right choice at that moment.

Mar 08, 2016 05:53 PM
DEANNA C. SMITH CERTIFIED MOBILE NOTARY

A successful home purchase is often the result of smart advanced planning coupled with diligent attention to the details and documentation. 

Mar 08, 2016 11:14 PM
Pamela Cendejas
Second Self Virtual Assistance - Kingman, AZ
Second Self Virtual Assistance (928) 692-3235

Deanna Early - My sister recently applied for a mortgage.  She then went out and purchased a new car.   This would have been good information for her.

Mar 10, 2016 12:48 AM
DEANNA C. SMITH CERTIFIED MOBILE NOTARY

I sure hope it didn't self destruct her credit score and blow up the loan package.   Unfortunately, people don't think about this in the moment.   Too often, it only comes to light when I have to inform them they do not qualify for a mortgage for their dream home.  The worst part is; sometimes I have to just sit down and cry with them. 

Mar 13, 2016 05:32 AM