DawnM Posted February 19, 2016 Share Posted February 19, 2016 We have lived here 11 years almost. Every time in the past that we have sold a house, we were in a position, to sell, move into temp housing, and then get a loan. This time we really want to sell and move all at once. How does the loan work for that? Do I call up and say we want a loan on top of what we have or do I tell them we want a pre-qual based on the sale of this house? The entire thing is daunting. I am trying to pack up the house and realizing we have WAY more stuff than I realized. Quote Link to comment Share on other sites More sharing options...
purplejackmama Posted February 19, 2016 Share Posted February 19, 2016 As someone who has been stuck with 2 large mortgage payments at one time, I'd be very leary of doing that again. We just *knew* that our current house was going to sell so we went ahead and built a new one. But it didn't sell and we were on the hook for a long time. But yes, your bank will loan you the additional money as long as your debt to income ratio isn't out of whack with the new payment. 2 Quote Link to comment Share on other sites More sharing options...
TranquilMind Posted February 19, 2016 Share Posted February 19, 2016 You want to buy and then sell? Or put your house on the market now and then buy when you find one? Talk to a mortgage broker (I find them more reasonably priced than lender reps). Quote Link to comment Share on other sites More sharing options...
Pawz4me Posted February 19, 2016 Share Posted February 19, 2016 It's your total debt to income ratio that matters. You have to be below the acceptable ratio for both payments as well as any other recurring payments you have (student loans, car loans, etc.). You need to sit down with a loan officer, who will be able to run the numbers and tell you how much you would qualify for. Also, there used to be bridge loans. I don't know if those are still available or not. If so, you'd want to carefully compare the pros/cons of those versus qualifying for two traditional mortgages. 1 Quote Link to comment Share on other sites More sharing options...
Joules Posted February 19, 2016 Share Posted February 19, 2016 As someone who has been stuck with 2 large mortgage payments at one time, I'd be very leary of doing that again. We just *knew* that our current house was going to sell so we went ahead and built a new one. But it didn't sell and we were on the hook for a long time. But yes, your bank will loan you the additional money as long as your debt to income ratio isn't out of whack with the new payment. Same thing happened to us, so be careful if you aren't making the purchase contingent. Banks seem to overestimate a great deal on "how much house you can afford" calculations, so in our case, we could afford both mortgages (in their opinion) and we didn't have to do anything special with the second loan. It would have been more complicated otherwise (we would have had to make one loan contingent on the other being paid off.) Since we had to pay both for a year(!), I'm glad we didn't overbuy. Quote Link to comment Share on other sites More sharing options...
prairiewindmomma Posted February 19, 2016 Share Posted February 19, 2016 You go get pre-qualified for a loan (and the documentation process is a lot more than it was 11 years ago). You can then rate lock for a period of time when you want to lock in. The key to being able to sell your house and close on the same day on another house is to leave a long enough period of time (usually 45 days) for the loan to be fully processed. We closed in 30 days on our current house, but it was a hair-raising ordeal and I had to constantly monitor with the loan broker what loan processing was doing. We closed on the correct day, but I think I got 20 new gray hairs out of the deal. (Living in a hotel room with 4 kids with your belongings arriving from cross-country in 24 hours will do that to you.) Quote Link to comment Share on other sites More sharing options...
DawnM Posted February 19, 2016 Author Share Posted February 19, 2016 I don't think I was clear. We have not sold this house yet. We do NOT intend to buy a new house until we sell this one and have the equity and will not carry 2 mortgages. However, we would like to sell and buy simultaneously, or as close to that as possible. We do not want to live in a temp housing for months and months. So, we need to start looking as the house goes on the market. When it goes into escrow, we will put in an offer on a new house and not close until this one closes (somewhat conditional offer.) What I want to know is.......how can we get a loan based on NOT having this mortgage if we still have this mortgage? Quote Link to comment Share on other sites More sharing options...
DawnM Posted February 19, 2016 Author Share Posted February 19, 2016 You want to buy and then sell? Or put your house on the market now and then buy when you find one? Talk to a mortgage broker (I find them more reasonably priced than lender reps). No, we want to sell and then buy, but as close to the same time as we can. Quote Link to comment Share on other sites More sharing options...
Scarlett Posted February 19, 2016 Share Posted February 19, 2016 You just have the purchase contingent upon your sale and ask for the closings to happen on the same day. 1 Quote Link to comment Share on other sites More sharing options...
teachermom2834 Posted February 19, 2016 Share Posted February 19, 2016 The loan brokers are used to this. When we moved this way we were pre approved based on expected sale of the current home and using the equity as a down payment. Quote Link to comment Share on other sites More sharing options...
Scarlett Posted February 19, 2016 Share Posted February 19, 2016 You just have the purchase contingent upon your sale and ask for the closings to happen on the same day. And I said "you just" as if it is super simple! It isn't. Lol..but it can be done. Loan officers are used to doing it and will walk you through it. Quote Link to comment Share on other sites More sharing options...
Arcadia Posted February 19, 2016 Share Posted February 19, 2016 What I want to know is.......how can we get a loan based on NOT having this mortgage if we still have this mortgage? Either way you would be prequalified for a loan amount that assume that the current home sale would lower the loan required. So prequalification loan amount would be estimated at new home price - current home potential sale price + any mortgage outstanding on current home to be paid off. If you are looking at prequalifying for a loan that is 80% of new home price, you might get higher rates but still possible because the mortgage company can put stipulations on the prequalification. The buyer side however did tell us that they will take a prequalified loan that is not contingent on sale of house over one that is depending on how many people are aiming to buy the same house. Quote Link to comment Share on other sites More sharing options...
DawnM Posted February 19, 2016 Author Share Posted February 19, 2016 Either way you would be prequalified for a loan amount that assume that the current home sale would lower the loan required. So prequalification loan amount would be estimated at new home price - current home potential sale price + any mortgage outstanding on current home to be paid off. If you are looking at prequalifying for a loan that is 80% of new home price, you might get higher rates but still possible because the mortgage company can put stipulations on the prequalification. The buyer side however did tell us that they will take a prequalified loan that is not contingent on sale of house over one that is depending on how many people are aiming to buy the same house. Yeah, that is what I am afraid of. I honestly DO NOT want to be in a temp house for any length of time. I have 2 dogs and 3 kids and may be starting a new job as early as July. UGH. But if it has to be, it has to be. We will be putting down 40%-50% depending on what we get for this house. Quote Link to comment Share on other sites More sharing options...
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