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Buying a new house - wait or sell current house first?
Posted on 4/16/16 at 11:09 pm
Posted on 4/16/16 at 11:09 pm
Looking to buy a new house at some point in the next year or so. It will be in a different school district for our kids. We currently have a mortgage. What's my play here besides waiting to find the right one and potentially carrying two mortgages for a while?
Does having a current mortgage make it difficult to qualify for a new one?
If someone can float me enough cash, reasonably what would roughly equal the equity I would expect to get from selling the current place, would that be a better option?
Any other options?
Does having a current mortgage make it difficult to qualify for a new one?
If someone can float me enough cash, reasonably what would roughly equal the equity I would expect to get from selling the current place, would that be a better option?
Any other options?
This post was edited on 4/16/16 at 11:10 pm
11
Posted on 4/16/16 at 11:22 pm to meeple
quote:
Does having a current mortgage make it difficult to qualify for a new one?
Well, it doesn't make it easier.
Posted on 4/17/16 at 6:32 am to meeple
whats your income, debt, credit score, and current house value?
Posted on 4/17/16 at 6:54 am to meeple
Depends on your market condition. If it's a sellers market, sell now and rent until the it turns to a buyers market.
Posted on 4/17/16 at 7:19 am to meeple
You can set up the contract for your new house to be contingent on the sale of your old house.
Posted on 4/17/16 at 7:34 am to meeple
quote:
Does having a current mortgage make it difficult to qualify for a new one?
I WOULD THINK SO.
If someone can float me enough cash, reasonably what would roughly equal the equity I would expect to get from selling the current place, would that be a better option? "FLOAT"?? IS THAT A LOAN, A GIFT, WHAT?
I can't recommend holding 2 mortgages.
Posted on 4/17/16 at 11:19 am to meeple
It sounds like you don't necessarily have the cash reserve to make a sizable down payment, plus maintain two mortgages until the current house sells.
I say sell the current house first, know what your profit is, then decide what house to purchase next. Close on the current one prior to the new one.
I say sell the current house first, know what your profit is, then decide what house to purchase next. Close on the current one prior to the new one.
Posted on 4/17/16 at 12:52 pm to jmarto1
quote:
You can set up the contract for your new house to be contingent on the sale of your old house.
Contingency can be a dis-advantage when there are competitive offers on the same house.
Posted on 4/17/16 at 1:13 pm to meeple
We sold our house, moved in to a rental(with an agreement that we were gone when we got done building) and then built. With all the unexpected things that come up in selling or building a house it was cleaner and less stressful that way.
Posted on 4/17/16 at 9:19 pm to BeerMoney
Renting may be an option but but don't most landlords want to lock you in for 6 month agreements or similar?
Posted on 4/17/16 at 10:08 pm to makersmark1
quote:
I can't recommend holding 2 mortgages.
This.
Biggest financial mistake I've made.
Posted on 4/17/16 at 10:17 pm to meeple
quote:
Renting may be an option but but don't most landlords want to lock you in for 6 month agreements or similar?
Of course they prefer a commitment for regular cash flow, but a shorter term agreement looks much more attractive to landlords than a vacant rental.
Posted on 4/18/16 at 8:48 am to meeple
I currently have two mortgages and it sucks. I have grown to loathe my old house I moved out of. I thought I could just put it right on the market once I moved out, but turns out I needed to do a lot of fix up work first. I would recommend at least making sure your current house is on the market before you get real serious about getting a new place.
Posted on 4/18/16 at 12:05 pm to TigerSaints318
I'm curious about this - I assume the second mortgage is going to be at a higher rate since it's not the primary residence. Once you sell the original house and extinguish that mortgage, does the other rate reset? Or would you have to go through the refi process?
Posted on 4/18/16 at 12:30 pm to Cold Cous Cous
quote:
I'm curious about this - I assume the second mortgage is going to be at a higher rate since it's not the primary residence. Once you sell the original house and extinguish that mortgage, does the other rate reset? Or would you have to go through the refi process?
No. I just did this. Seller had multiple offers on property. I told them I'd waive the contingency and we could move forward ASAP. We received a competitive 30 year traditional rate from lender.
I knew my house would sell quickly and I would only recommend if you feel confident in that. I had an accepted offer in 21 days. Never had to double up mortgage payments.
Posted on 4/18/16 at 12:43 pm to Cold Cous Cous
Like the Afro man said, my rate was not affected. I had the income, credit and money down to support it though. That being said, have a good sell strategy on the old house before taking on a new mortgage.
Posted on 4/18/16 at 5:47 pm to meeple
quote:
Does having a current mortgage make it difficult to qualify for a new one?
No, I had two credit unions willing to do it. You may need to come up with at least 20% down payment though.
Posted on 4/19/16 at 9:38 am to meeple
Currently in the same situation. We elected to sell our house 1st and rent. I cant give myself a logical reason to have 2 mortgages at the same time. Financially not a good decision.
Posted on 4/19/16 at 9:58 am to sonoma8
How did you negotiate the term of the rental, if you find a place before the term is up? Is it month to month?
Posted on 4/19/16 at 3:11 pm to meeple
Depends on the landlord. The guy I rented from was happy to have someone reasonable taking care of his place. He mentioned having me pay an extra $100 per month to cover the fact that he'd have to find another renter in a couple of months but dropped that when he realized I'd be there for longer than 6 months. I was there for about 9 months. I would've payed the extra $100 if need be.
We looked at several rent houses. Most landlords seemed to like the idea of the easy money that comes with a non-renter type person taking care of their property. Apparently the typical renter treats other peoples property like shite.
We looked at several rent houses. Most landlords seemed to like the idea of the easy money that comes with a non-renter type person taking care of their property. Apparently the typical renter treats other peoples property like shite.
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