U.S. CitiesCity-Data Forum Index
Happy Easter!
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 06-12-2011, 11:16 PM
 
Location: Spring, TX
107 posts, read 359,370 times
Reputation: 77

Advertisements

How do people qualify for a new loan before the sale of their existing home? this doesn't affect me because I own my home outright but if I had a mortgage, how would I get financing? For example...

Say I had a $2000 a month payment on the existing home including property taxes. And my monthly income was $8000. With no other revolving debt, my ratios would be 25/25. But if I wanted to buy a new home and the existing one had not sold yet, Those ratios would be 50/50 and no bank in their right mind would lend the money.

So how do people who live in one house buy a new one to move into without first selling the old one? Especially in a slow market like the current one, a person could be sitting on a house for months before they could sell.
Reply With Quote Quick reply to this message

 
Old 06-12-2011, 11:28 PM
 
Location: Tempe, Arizona
4,511 posts, read 11,564,930 times
Reputation: 2180
Quote:
Originally Posted by Lou Gehrig View Post
...So how do people who live in one house buy a new one to move into without first selling the old one? ...
They don't unless they can show they can afford both mortgages. Loan qualification will take into account all current debts, including their current mortgage.

Quote:
Especially in a slow market like the current one, a person could be sitting on a house for months before they could sell.
That's right, and happens frequently. However, if it's taking months to sell, then they need to adjust their price. If the price is not what they want to sell at, then take it off the market.
Reply With Quote Quick reply to this message
 
Old 06-13-2011, 09:47 AM
 
Location: Morrisville
1,168 posts, read 2,081,209 times
Reputation: 1113
Some builders/sellers will accept a contingency offer meaning that (in the case of new construction) the builder will begin construction of your home based on you being able to sell your current home within a pre-determined time frame. However you as a buyer must make efforts to get your home sold asap.
Reply With Quote Quick reply to this message
 
Old 06-13-2011, 10:07 AM
 
Location: Tempe, Arizona
4,511 posts, read 11,564,930 times
Reputation: 2180
As noted by BiggJoe, a buyer can make a purchase offer contingent on selling their current home, and the lender can provide loan pre-qualification with the sale as a contingency to full approval. It's then up to the seller to take such a contingent offer or not. However, in this market most won't unless the buyer can at least show they have a contract for their home.
Reply With Quote Quick reply to this message
 
Old 06-13-2011, 10:28 AM
 
Location: Boise, ID
8,013 posts, read 22,537,670 times
Reputation: 9223
Another option many people choose is to sell their house first and then rent short term while buying a new house. That way, this is avoided.
Reply With Quote Quick reply to this message
 
Old 06-13-2011, 12:37 PM
 
Location: Austin
7,082 posts, read 16,911,735 times
Reputation: 9502
Many things come into play including their current assets. You don't know about their investments, 401k, IRA, or anything else like that. Some lenders will lend just on you have the money available to you even if it's not liquid, and then they hold the assumption you will sell your current house to help free up other reserves.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top