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I've got a credit score of 808. Own a house free and clear that I am trying to sell (it's on the market). I found another home (same price) that I want to buy. Here's the problem. I got layed off from my job, BUT I have a job interview this week and it looks good.(final interview).
I really want to buy the new house, and if/when MY house sells I could buy it for cash! Of course, we don't know how long it will take to sell. Do you think I will have any problem getting a mortgage loan? I can't wait till my house sells, I need to make an offer NOW because there is great interest in the house I want. I will lose the house if I wait.
(I don't really have experience shopping for loans, I bought my house 20 years ago, and parents did most of the paperwork and loan stuff)
A personal opinion without any financial analysis. Just wait. You're under no pressure to sell, have no mortgage chewing you up. You're out of a job and have no steady income. No house is worth imperilling what you already own free and clear - and could keep with minimal income to cover insurance, taxes, and utilities.
I forgot to add, I have already moved out of house #1 and moved all the way across country to the west coast. I have no plans to move back. House #2 (the house I want to buy) is bank owned REO property. It is where I plan to live for the next 20+ years. I am in the medical field and jobs are plentiful. I'm not worried about that part.
I understand from the OP's second post that the reason for current unemployment is legitimate, and odds of a new position with similar salary are probably reasonable, but it would be prudent to simply SELL THE FIRST PLACE before making an offer on the REO -- even if that means losing the "great deal" it is the smart thing to do. No body with any brains is predicting things are going rebound suddenly and sharply -- there will be lots more opportunities to buy REO and other "great deals" for quite a while...
Back when qualifications were easy most lenders did not bother to overly scrutinize lenders with high FICO scores, but now it is different story -- if you told pretty much any lender that you are currently with out a job, and thus with out income, regardless of what assets you may have, you are just NOT going to get a loan (there are exceptions, like lenders with whom you have a long history, and will keep our loan in their portfolio, but if that was OP, he would have probably already had that conversation with his "personal banking specialist"...)
Once your first home sells and your income / employment are in order you can smoothly close on anything you want. Why give yourself a nervous breakdown with a potential rejected loan / unclosable deal?
please don't listen to these people. you will have to provide employment prior to getting approved. as long as it is in the same field you shouldn't have a problem. you really should be talking to a broker at this point if you want to make an offer. you should always be pre-approved before shopping around. your offer will also be contingent on you getting financing, you could always back out later if they accept and you didn't get the job and thus didn't get the financing.
There will be no shortage of bank owned homes on the west coast anytime soon. You also need to be employed, or at least have employment lined up, in order to qualify for a new mortgage. So even if you want to make your offer on the home now, a banked owned property often requires you to have a pre-approval letter, and at this point one wouldn't be possible.
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