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second before first

Posted on: 19th Aug, 2009 08:52 pm
I am planning to buy a second home and don't want to wait for the money from the sale of my first home. Can there be any problems to it
Hi spy!

Welcome to forums!

If you have a mortgage on the first property, then there are chances that you won't be getting a new mortgage for another property. You will have to first sell your existing property and clear off the mortgage dues and then apply for another mortgage for a new property.

Feel free to ask if you've further queries.

Sussane
Posted on: 19th Aug, 2009 11:12 pm
not sure why you put it that way, sussane, but here's my take on it:

spy, if you can qualify for the new mortgage while still holding the existing mortgage, then there ought to be no reason to be denied. a lender will consider your income in relation to all your debt - the existing loan, the new loan and any other debt you may have. if it fits, they'll give you the new loan on the new property. if it doesn't fit, then you'll have to wait.
Posted on: 20th Aug, 2009 10:26 am
spy

I have heard that some of the banks do offerthe credit facilities for the brokers so that they can match up between two subsequent buy sell. and thus bank gets its business just for a small amount of time not even more than two months.
If you ask your bank that if theuy offer these kind of services then it will be nice option to go for that. but again you need to make it clear to the bank and it is really a tough task but once you give the original documents with the agreement to the bank they will surely agree atleast for 2 months but if it exceeds that period then you will be in a big trouble.So take the decision wisely.
Posted on: 21st Aug, 2009 12:00 pm
fred, can you try to explain what it is that you just wrote in that post? i can't make any sense of it whatsoever.
Posted on: 21st Aug, 2009 12:12 pm
George
I was referring to the 'bridge loans' to be very specific.Where bank funds the partial amount for the new home and once the old home is sold off bank gets its money with some interest on it.

I apologise from the members, if anyone of you didn't understood my last post.
Posted on: 23rd Aug, 2009 11:25 am
thanks fred - better to use the specific term the first time, honestly. i think most are familiar with the terminology of bridge loans. and for those who are not, that's why we are at the ready when questions are posed.
Posted on: 24th Aug, 2009 07:26 am
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