Home Buying in Chandler>Question Details

Taratatro21, Home Buyer in Gilbert, AZ

Can i buy another home and rent mine in Arizona?

Asked by Taratatro21, Gilbert, AZ Fri Mar 1, 2013

My boyfriend and I each own a home in our own names. My house is rented out to my mom and we live in his. We want to move and get a new home and rent his out. I have owned mine for a year and he has owned his for 2 years. The mortgage on mine with all escrow is 750 and for his is 950. Since my mom rents mine she pays only the 750. I am sure we can rent his out for more than 950 as it is in Gilbert and nice area. Our income together is about 110k to 115k. What do we need to do to qualify for a mortgage together?

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Hi Taratatro 21:

As the first lender to respond, let me try to answer your question: "What do (you) need to do to qualify for a mortgage together?"

As mentioned by others, you need to get in touch with a licensed Mortgage Loan Originator--MLO (ask for their NMLS #, as shown in my signature below, and make sure you are comfortable with them) and have an in-depth discussion on your whole financial picture--no one can tell you "You are in good shape and will more than qualify" or "You should have no issue qualifying for a loan", etc. without knowing a GOOD deal more about your situation.

As I like to tell my clients, there are the Four Pillars of Lending: Collateral, Credit, Income and Assets (Double C-IA). The Collateral is the home you will buy and has nothing to do with you qualifying; the appraiser will determine if it qualifies! :)

Credit--You will want to have your MLO pull a tri-merge credit report (includes the three big reporting agencies) and go over it with you. Your credit scores will determine for which programs you qualify and what interest rate and costs you will pay. Have you had adverse events in the recent past--bankruptcy, foreclosure or short sale, etc.? These are just some of the very important missing pieces, needed to intelligently tell you if you qualify. Bad enough credit, and lots of income does not matter.

NOTE: I just posted a blog to Trulia this Thursday on "Credit Scores and Mortgage Interest Rates" which addresses the costs of different credit scores. Please read and give feedback.

Income--Income is King now. It used to be credit scores, back when you could get a loan just based on a high enough credit score. Not so anymore--you HAVE to be able to document enough income to meet all your debts, which is another key piece of information missing from your post. Income is great, but what are your liabilities, as too much debt and, all of a sudden, you are not looking so good.

Assets--Do you have enough money saved over time to meet the costs of the down payment, closing costs and prepaids (taxes, insurance, etc.), along with some reserves to meet the new financial responsibilities which come with every home? Can you show where the monies came from? These are questions which must be asked and supported.

So, to answer your question, you need to get to know a good MLO, discuss your situation, fix any weak spots, and you can then feel confident you are in good shape to qualify for a mortgage.

Bill Parker, Loan Officer
AZ Lic# 09011570
NMLS #223607
CPA--Licensed, no longer practicing

GenCor Mortgage Inc.
15730 N. 83rd Way, Suite 103
Scottsdale, AZ 85260
(O) 480-525-8496, EXT 743; (M) 602-565-3646; (F) 480-436-5226
EM: BParker@GenCorMortgage.com
Website: http://www.GenCorMortgage.com
LinkedIn: http://www.linkedin.com/in/billparkercpa

MISSION STATEMENT: To create an unbelievably enjoyable experience for my clients, while guiding them through the most important financial transactions of their personal lives. My clients know me as their Mortgage Lender for Life. I truly appreciate your referrals.

If you think it's expensive to hire a professional to do the job, wait until you hire an amateur.
Red Adair, Oil well firefighter
2 votes Thank Flag Link Sat Mar 2, 2013
Contact a lender or start with a lender that you bank with (i.e. wells fargo, chase, bank of america) etc.. They will walk you through the process and tell you whether you both qualify for a loan together or what steps you'd need to take to make everything work. Good luck!
0 votes Thank Flag Link Mon Mar 4, 2013
We have helped a number of Arizona Homeowners in your situation. We have lenders we partner with that have proven over time to be dependable and very fair with our clients.

Gilbert rentals are in demand and are bringing a good price in today's market. We happen to also do Property Management so we understand the rental market very well. We have had interest for Gilbert homes that we have not been able to meet so please let me know what the home is as soon as possible.

Lets put together a plan to find your dream home and rent the one you now live in!
0 votes Thank Flag Link Sat Mar 2, 2013
Hello Taratatro21,

After you qualify for another home purchase I suggest calling a "Buyers Agent" like myself and we go look at properties. I will look out for your best interests and I will see that the purchase and the paperwork go as smoothly as possible.

Please contact me anytime.

John C Johnson "JJ"
Solutions Real Estate
Valley Solutions Team
REALTOR®, Buyer's Consultant
Direct (480) 606-2027
eFax 1-(888) 958-2554
0 votes Thank Flag Link Sat Mar 2, 2013
I strongly recommend you speak with a loan officer, here in Arizona I can recommend Vice President Paul Volpe with Nova Home Loans at (520) 441-4048. Talk to a local lender, see what they can get you pre-qualified for and make sure to disclose the current mortgage and your plans to rent it out.

The good news is it is free and no obligation. Next, once you find out if you or what you are pre-qualified for I would start a relationship with a local Realtor (one that works your are in Gilbert) and see what is out there.

Best of luck.

0 votes Thank Flag Link Sat Mar 2, 2013
You should have no issue qualifying for a loan to purchase a home. The only issue you might run into is you might not qualify at a certain price range. As many have mentioned on here speak to a lender they can get you qualified and give you the options you have.

I have an excellent lender who I can refer. Feel free to email me Pesqueira2@cox.net and or call/text 480.458.8007and I can send you his contact number. I can also send you his quick loan app to fill out and send to him.

Hope this helps and do not hesitate to call or email me anytime. Good luck!

Juan Pesqueira
American Associates Real Estate
Homes | Condos | Investments
Spanish and English speaking Realtor
Realtor, Appraiser
8930 E. Raintree Drive Suite 200
Scottsdale, AZ 85260
Office 480-458-8007 | Fax 480.767.7200
email: pesqueira2@cox.net
TEMPE REALTY CO. http://www.TempeHomesCondos.Com
LAVISH PAD BOUTIQUE – http://AZLuxuryHomeBlog.Com
TEMPE REAL ESTATE BLOG - http://TempeRealEstateBlog.wordpress.com

Yes Dreams Come True, Let me Show You!
Web Reference: http://AZLuxuryHomeBlog.Com
0 votes Thank Flag Link Sat Mar 2, 2013
Dear Tara:

You look ok assuming your credit report is ok.

This is a good time to buy with the low mortgage rates.

If you need the referral of a lender just ask.

Here are the homes for sale in Gilbert: http://link.flexmls.com/zn089sos4xe,12

Jeffrey Masich, Realtor, GRI, MBA
Arizona Homes for Purchase or Sale
0 votes Thank Flag Link Fri Mar 1, 2013
Hi Tara

You are in good shape and will more than qualify.

Do get in touch with the many fine loan agents responding.

Good luck

Web Reference: http://www.ruthandperry.com
0 votes Thank Flag Link Fri Mar 1, 2013
Most probably you will not have any problems qualifying for a new mortgage. Although it will depend on some other factors (your credit rating, your debt/income ratio, etc...). It will also depend on how you present your case. I live and specialize in the east valley (Chandler, Gilbert, etc...) and will gladly help you.

Carlos J Ramírez, PC
Broker/Realtor, ABR, CNE
Certified Negotiation Expert
602-512-5825 direct
602-749-6327 fax
0 votes Thank Flag Link Fri Mar 1, 2013
Please call Chase McLane at VIP Mortgage at 480-374-0713. He is the best lender around and can answer that question for you. And if you need any help buying, selling, or renting, my team and I are rated #1 on here and you may also look me up on the "other" major real estate realted website where we have 77 5-star reviews as well.
0 votes Thank Flag Link Fri Mar 1, 2013
Yes, ask a mortgagespecialist to qualify you. They can do it for both of you, you don't have to be married, but keep in mind you will both be equally responsible for the mkorgage, even if you are no longer together. I have a couple of great lenders in the area. Shoot me an email and I will send you some informationa dn you can contact them di\rectly.
0 votes Thank Flag Link Fri Mar 1, 2013
You should speak with a lender directly. My clients have used several in the past that might be able to help you.
0 votes Thank Flag Link Fri Mar 1, 2013
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