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Qualifying for a Mortgage/2nd Mortgage?

Posted on: 20th Dec, 2010 05:43 pm
Hello All

Looking for some advice please if someone can offer it. My wife and I recently found out we are pregnant with our first child due mid June and think we could really do with a larger home as our home although a four bedroom really has no space to live in mainly because it was built for Short Term Rental in mind (its 15 mins from Disney).

My wife bought this home in 2006 shortly after I moved from the UK to Florida when the housing market was in its peek for around $293k , we love our home and its got an amazing view but we realise in this market we would have no chance of selling it so we plan to turn it back into a Short Term Rental home and rent it week by week to pay the mortgage till things maybe turn around in the future...far future from what I can see.

So we have an idea of a community we would like to live on and a price range of about $180k which would buy us a lot larger home and room for a growing family. I have around $30k put aside which I am hoping to use to put down on a mortgage.


Now my wife has the current mortgage in her name and we have never missed a payment, her credit is in good shape at about 750. My credit is ok at about 678 to 700 from my latest report and I dont really have anything in my name apart from a couple of credit cards I have paid off and one that owes about $3k.

So my question is do you think I or we would qualify for a mortgage (or a 2nd mortgage in my wifes case).

Hope someone can please help me with this, I am sure this is an open ended question and sure there is more information that is needed from my side and I will happily supply this.

Thank you for any help

Stuart
Just a quick note thats my username appears as Admin, I am not admin but my email address starts with admin@ so I think its taken my username from that, it its a problem with the real admin please feel free to change it to Stuart80 or something along those lines. Thank you and sorry for the trouble.
Posted on: 20th Dec, 2010 05:47 pm
Hi!

Welcome to forums!

As your wife already has a mortgage in her name, it will be difficult for her to qualify for a new loan to buy another property. However, I guess your name is not mentioned on the present mortgage. In such a situation, you'll be able to qualify for a mortgage on your own.

Feel free to ask if you've further queries.

Sussane
Posted on: 20th Dec, 2010 07:39 pm
Thank you Sussane for your reply I appricate it.

Regarding my wife it was suggested to me a while back that if I include her I would get better mortgage rates? Is it possible to include someone on the mortgage already with another mortgage or would that could against me because she already has one in her name even though I am not on it?

What sort of income would I need to qualify for a mortgage under $200k also does 20/30k sound a fair deposit?

Our current mortgage has rates of 12% and 7.25% in 2006, would we get a better rate nowdays because the rates dropped or is it based on credit rating and money down etc?

Thank you for all your advice I really appricate it.

Stuart
Posted on: 22nd Dec, 2010 05:15 pm
hi admin!

welcome to forums!

you and your wife will have to refinance the mortgage in your names. this will help you in adding your wife to the loan. the lender will go through your financial situation and let you know whether or not your income will help you in qualifying for the loan. if you have the required income, good credit scores and debt to income ratio, you'll be able to get a low rate for your loan.

feel free to ask if you've further queries.

sussane
Posted on: 22nd Dec, 2010 08:43 pm
Hi Stuart,

Important stuff first: Congratulations Dad!

Your situation isn't uncommon at all. We have a few considerations to run through. From here on out, "old" home and "new" home...

Old home...You said you bought at 293k. Any ideas on current value? What are the amounts of the 1st (12.5%) and 2nd (7.5%)?

New home...your down payment is more than sufficient. The credit scores sound sufficient. We need to zero in on your debt-to-income. The absolute easiest solution is to see if you qualify for both properties. What is your household income? Also, wife...any debts (cars, etc) in her name?

Again, congrats!

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Chris Richter
Senior Mortgage Planner
Luett Mortgage Group, a production unit of Wintrust Mortgage
773-931-2424 - direct
crichter (at) luettmortgagegroup.com
http://www.luettmortgagegroup.com/
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Posted on: 29th Dec, 2010 06:35 am
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