Posted on: 06th May, 2007 06:31 am
ok here is my dilemma. i have a contract signed and a loan being processed for a condo i bought. closing is in a few weeks. now we saw this townhome we like. we have changed our mind and think we need this bigger townhome.
1. can i get another mortgage while this one is being processed, my qualification should not be a problem as I make enuf money and will 20% down
2. or should i wait for this condo to close and then try and get another mortgage for a townhome?
what are the pros and cons?
1. can i get another mortgage while this one is being processed, my qualification should not be a problem as I make enuf money and will 20% down
2. or should i wait for this condo to close and then try and get another mortgage for a townhome?
what are the pros and cons?
Well, that's one you don't see every day...
On the first-hand, I suppose you should investigate the penalties for breaking the contract on the condo. That's the most straight-forward way to proceed I would think.
While, yes, you could get another loan and there's nothing wrong with buying two properties at once there is the issue of primary residency. The interest rates are lower for primary residence loans then for non-primary properties. Which will be which and it's not just your statement but the lender's belief in the matter.
Unless you want to become a rental property owner, why incur not only the cost of buying a property you will just re-sell but also the risk that you can't resell it quickly?
It seems that breaking the contract and paying the cost, typically the loss of your earnest money, is the best choice. It's at least what I would consider first.
good luck.
On the first-hand, I suppose you should investigate the penalties for breaking the contract on the condo. That's the most straight-forward way to proceed I would think.
While, yes, you could get another loan and there's nothing wrong with buying two properties at once there is the issue of primary residency. The interest rates are lower for primary residence loans then for non-primary properties. Which will be which and it's not just your statement but the lender's belief in the matter.
Unless you want to become a rental property owner, why incur not only the cost of buying a property you will just re-sell but also the risk that you can't resell it quickly?
It seems that breaking the contract and paying the cost, typically the loss of your earnest money, is the best choice. It's at least what I would consider first.
good luck.
Hi fais,
If you can afford to mange two loans, you can go for both the condo and the town home and then treat the condo as a second home. Or else, you may use the condo as a rental property if you would like to pay off the mortgage against it using the rental payments that you get on a monthly basis.
As far as getting the loan is concerned, that will depend more on your financial situation and credit status. And, if you are able to afford the down payment and other costs, then you can go for the deal.
Hope this helps...
God bless you.
Samantha
If you can afford to mange two loans, you can go for both the condo and the town home and then treat the condo as a second home. Or else, you may use the condo as a rental property if you would like to pay off the mortgage against it using the rental payments that you get on a monthly basis.
As far as getting the loan is concerned, that will depend more on your financial situation and credit status. And, if you are able to afford the down payment and other costs, then you can go for the deal.
Hope this helps...
God bless you.
Samantha
