Will Leasing a Car Ruin Your Chances of Buying a Home? Maybe—Here’s Why MABA MassachusettsRealEstate FirstTimeHomeBuyers MaBuyerAgents

Buying a home of your very own is a dream. For most people to make that dream a reality, they’ll have to get approved for a home loan. To up your chances of being approved—at a favorable rate—it’s always smart to pay down debts or pay off existing loans to the best of your ability. But one common thing that can mess with your homebuying plans is having a car lease.

“Whether you choose to lease or finance a car, you’ll increase your total monthly expenses. However, mortgage lenders view leasing and financing a car differently,” says Ashley Moore, community lending manager at Chase Home Lending.

If you have your eyes on a new house—and also a nice ride—you should understand exactly how carrying a lease will affect your buying power. Here’s what you need to know.

What do lenders generally look at?

Lenders calculate your debt-to-income ratio, or DTI, which is a person’s………………….

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FIRST TIME HOMEBUYERS

Buyer’s Agents Explained