Do's and Dont's In Getting A Mortgage Loan Approval Letter 1- Do NOT buy a car or take a large loan with a new payment before you plan to buy a house if you can avoid it. At least get pre-approved to buy a house BEFORE you buy the car so that you are fully educated on what your max car payment should be to still be in position to buy a house and get approved. Yes, even if you don't think you are buying a house for another year it is still important to educate yourself that far in advance if you feel that you will be taking on new debt (car loan, credit card, etc) I continue to see younger home buyer prospects with $500 car payments and then want to buy a house for the first time but can't get approved because of debt to income ratio. 2- Know your credit and manage it. Don't wait until 2 months before you want to buy to get pre-approved if you have NEVER been pre-approved before. Too many times do I get the call that my lease ends in 2 months...
