Home Buying in 85204>Question Details

Jetescamilla, Home Buyer in 85204

Looking to buy a second home and rent out the first

Asked by Jetescamilla, 85204 Mon May 18, 2009

My wife and I own a house in Mesa, AZ we are currently renting for $895/mo. Our mortgage payment each month is $1385. We pay $1575/mo and put the additional to the principal.

We are able to get a renter in right now because we are living in Olympia, WA for a project assignment with my company for a year. As of right now my company is paying for most everything while we live here to work. We are putting all we can aside so when we move back we can put a down payment for another home. We will probably be moving back in about 8 months and then be interested in buying. Since getting burned on the first home, I would hate to miss out on a great opportunity to buy while the market is down. I should also say that my car ($385/mo) will be getting paid off in 12 months. Should we wait to buy after the car is paid off? Would we have any trouble getting a second mortgage? The first house I bought myself before I married, is there any benefit to putting the second in my wifes name?

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Answers

5
Hi,
If you want to avoid "getting burned" you should try to buy as soon as possible. Currently the SE Valley market inventory is low and prices are increasing rapidly. How long that will continue is unknown but in a year you may have already missed a great opportunity. I suggest you stop paying extra toward the existing home to allow you to save up more for your down payment. You can always resume that plan when the time is right. As far as qualifying I would need more info about your current rental before I can accurately advise you. If it has been a rental for a while or you have other landlord experience you may not have to fully qualify for both payments. In some cases a spouse can qualify on their own to purchase a home so it depends on your situation but it may be a benefit for your wife to buy on her own. Mostly these are qualiying debt to income ratio questions your asking. A knowledgeable lender is where you should start and you should determine that as soon as possible. You may be pleasantly surprised at what you are capable of doing. That way if you need to wait you will be able to strategize for the future to be sure you employ the best possible scenario. I'd be happy to answer all your questions and help you figure out what's best. Dial me up!
Charlie
602-577-1111
charlie@charliewalters.com
0 votes Thank Flag Link Tue Sep 18, 2012
WOW!!!
I can help you find a home, however you need an experienced mortgage broker. Try Brian Brady, you can ask your questions via his blog
http://delmar.typepad.com/brianbrady/how-to-contact-brian.html

Good Luck

Patrick
Web Reference: http://www.AZRE.TV
0 votes Thank Flag Link Mon May 18, 2009
Mr.P, Other/Just Looking in Arizona
MVP'08
Jetescamilla,

I wish there was a way to answer your questions in a post here to Trulia but in reality, there are so many other varying factors in your question and unknowns Only a more direct approach can produce an accurate and better informed answer.

If you want some guidance,I can pass along an invitation to start a dialogue to get you pointed in the right direction with a clear plan in mind.

Angie (my wife) and I have been in the mortgage and real estate industry for nearly 25 years and with a level of experience from both ends I think we can come up with a plan for you.

Thanks in advance for your reply.

Sincerely,

Stew Keene
Signature Realty Group
2008-20009 Master of Real Estate Award
GRI, ABR, CNE, MRE, E Pro, AHWD
0 votes Thank Flag Link Mon May 18, 2009
Jetescamilla,

Regarding putting the second on your wifes name it depends on what kind of benefits you are talking about. If it is in terms of taxes you will have to consult a CPA, for other type of benefits or advantages (inlcuding will, etc) you will be better served by speaking with an attorney.

The rules for getting you qualified for a property have changed a lot, and they are still changing. It you have less than 50% equity on your current house, you will most probably have to qualify and demonstrate that you are able to make the payments on both properties, and most probably they will not be able to count the rental income from the first house.

To give you proper advice we will need a lot more information and your best bet will be to talk with a local lender. If you wish I can give you contact information of a few very good lenders in the area who will be able to provide you with a free consultation.

Carlos J Ramirez, PC, ABR, CNE
Associate Broker, HomeSmart -
0 votes Thank Flag Link Mon May 18, 2009
Hi,

I would be happy to guide you through this!

There are some great values in the area and the inventory is decreasing quickly! I do have some recent stats if you would like to see them. If you can put an offer on a short sale it will take up to three months or more for acceptance in many cases.

I have a lender on my site that would be able to get you a great loan! More than likely paying off the loan will help, however Bryan can answer that for sure.

Feel free to contact me anytime! I am working with several buyers from the North and have great referrals!

Lucinda Tkach
Windermere Central
lucindat@windermere.com
602-799-6846
0 votes Thank Flag Link Mon May 18, 2009
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