Posted on: 07th Oct, 2008 01:28 pm
I found a home to purchase, asking 199K but said to be worth 315 fair market value by the county records. Currently i have a mortgage and consumer debt, I can well afford the newer purchase, but ofcourse will need to sell my current home/pay debt down. will applying for a loan pre approval take into account sale of the exsisting home/pay down of debt or will they consider all factors as debt and the new home mortgage?
Hi rolemdl!
When a lender offers a pre-approval, he will thoroughly check your credit which will include everything including debt and the new home mortgage. After checking every detail, a lender issues a pre-approval letter.
Thanks,
Jerry
When a lender offers a pre-approval, he will thoroughly check your credit which will include everything including debt and the new home mortgage. After checking every detail, a lender issues a pre-approval letter.
Thanks,
Jerry
I have numerous clients who are in your exact situation. We will issue a pre approval based uopn the assumption that your current home has been paid off. You can put in an offer but make sure there is a contingency clause.
Feel free to contact me if you need any advice or help
Steve
Feel free to contact me if you need any advice or help
Steve
rolemdl1, as steve noted, you are likely to be approved for a new mortgage contingent upon the sale of your existing home. if you cannot sell the home prior to closing on the new purchase, you would need to qualify while holding the current mortgage at the same time.
there are occasions that will allow for you to rent your current home, provide a lease and documentation that the rental amount is market-based; and to have that information considered by the lender favorably. you'll want to bring this topic up to your lender specifically.
if you can qualify for this new debt while retaining all of your other debt, that is the best of all scenarios. a good, solid loan officer will help you navigate through these questions.
there are occasions that will allow for you to rent your current home, provide a lease and documentation that the rental amount is market-based; and to have that information considered by the lender favorably. you'll want to bring this topic up to your lender specifically.
if you can qualify for this new debt while retaining all of your other debt, that is the best of all scenarios. a good, solid loan officer will help you navigate through these questions.
