2nd home, do we qualify for mortgage?
Our present home has been for sale for couple of months and no offers yet. We lowered the price to $314,000. The house is all paid off, we have no mortgage, 0 other debt, and our credit scores are tops, over 750 FICO. We have a monthly income of 4k. We also have an estate condo ( owned by 3 siblings ) that has been on the market for 4 months at $239,000 that is also paid off. We want to relocate about an hour from where we presently live, and would like to purchase a primary house for arount $300,000, more or less, before our children start school in August. We want to sell the present home, but if it doesn't, we're open to renting it out for around $1,300/month. After all expenses are paid, taxes, ins, etc, we will pocket about $600/ month. We want to put down $90,000 for the new home, and obtain a mortgage for the balance. We'be been hearing a lot about the lenders being very strict, and we're a little worried. Would we qualify for mortgage? by jackiejillpetite from Cleveland, Ohio. Jun 22nd 2011
Chris Gummerson (cgummerson11)
#397 ranked lender in California - 648 contributions
Yes the industry has changed, but its only for everyones benefit. Long gone are the no income, no appraisal, no verification loans. You must be able to prove your income with tax returns for 2 years, have a 2 year stable work history, have good credit and enough assets to close. I dont think that you would have any issues getting a loan. Since your homes are already paid off, there is no other loan to go against your debt to income ratio. You can contact me and I can give you some options on your goals. Dont be fooled by what others say, go for it and get the ball rolling...
Geoffrey Tirabassi (geoffrey.tirabassi)
#67 ranked lender in New Jersey - 34 contributions
Your scenarios sounds resonable and very well may be just fine to qualify for a mortgage based on today's lending guidelines. At this point you definitely want to find a reputible mortgage profesional to get you prequalified for this purchase by conducting a formal review of your income,assetts, credit and debts. Keep in mind that a pre qualification should be a free service, no obligation and relatively quick to complete(often within 24hours). I can certainly help you with this if you wish. Just give me a call or email. 732-713-5519 geoffrey.tirabassi@capitalone.com
Tom Stevens (Thomas.Stevens)
#21 ranked lender in Massachusetts - 68 contributions
HiDespite all the information you provided, there's not enough to say yes or noWhile you will have positive cash flow from your present home, the rental income would not be considered as you have less than 2 year history of having received it. Having said that, you may very well qualify but will need to be able to pay the mortgage on your new home (it could be financed as a primary residence) plus the real estate tax and insurance for your present home. Combined with your sizable down payment you should be in good shape. You may wish to get 1 or 2 mortgage loan preapprovals. Let me know if I can help.TomThomas J. Stevens, Loan Officer, Flagstar Bankfinancing in 50 states781-862-0585 x223 Thomas.Stevens@Flagstar.com
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