Home Buying in 62812>Question Details

Gracie, Other/Just Looking in Benton, IL

Where do i start with trying to buy and sell at same time?

Asked by Gracie, Benton, IL Tue Oct 16, 2012

I don't know where to begin. I am tired of being cramped up in a small 2 bedroom house. We need space yesterday! The bank that currently has our mortgage loan said they will approve us for another loan we checked on a property that was 109,000 but only if we have 20% down. We don't have that kind of money unless we can sell our current home. Husband is a vet and has never used the va loan for home purchase but he works from 6am to 5pm and i work from 3 to 11pm. Hard to get anything done at all other than dreaming about closets and more square footage. My issue is we have so many things and kids in our small place its going to be hard for someone to imagine the potential for them to buy this place with us in it! Getting seriously frustrated with all this, about to just tear down my new pool and build on to my house and give up.

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2
Gracie

My advice is take things step by step. Your debt to income ratio to purchase a new home is your primary issue. VA loan won't help you because of your debt to income ratio. However, if you rent your current home sometimes you can count towards your debt to income ratio and it cancels out your mortgage. Then maybe you can use the VA loan that is no money down, no pmi - good deal. Rate is a little higher, usually, but rates are so low anyway, may still work.

Ask around to some lenders. Sometimes if you have a section 8 housing voucher holder rent your property, since the income is guaranteed, some lenders will count towards dti without rental history.

If you can do this and want to do this, then I would suggest you talk to some professionals to help you with both the rental and purchase. Some of my clients have one partner take the lead if there are scheduling conflicts. Good luck.
0 votes Thank Flag Link Tue Oct 16, 2012
It doesn't sound as though you have reached the "crisis" state yet so it would likely be best to focus your time, energy, and extra cash on getting your home ready to sell. This doesn't necessarily mean you will need to spend beacoup money because much can be accomplished by sorting, weeding out, repairing, minimizing and cleaning etc.....allowing the home to be seen in its best light.

Your best formula for financial success will be to sell your current home prior to going to contract on a new one. It's best to not overlook the lesson learned by many that ignored this basic idea before ushering in the housing melt down that we are still trying to put behind us.

Being able to prioritize and take things sequencially should help you find the peace of mind you are so much in need of.

Good luck,

Bill
0 votes Thank Flag Link Tue Oct 16, 2012
Other than my 3yr old carpeting is ruined and needs replaced, thanks to my children and dog we have replaced the siding furnace ac unit and added insulation.We also put in a small garage, new pool, landscaping added a privacy fence and a backyard bar. Its a great neighborhood and a cute house just not big enough for us at all. I dont really want to replace any more carpeting til we move out or itll look the same even the dining area has carpet...not good for kids. I am hoping my husband can find time go apply for the va loan and we will just have to deal with 2 mortgages until this place sales i dont really see a way around it. Kids are at each others throats and half my wardrobe is in the garage loft.
Flag Tue Oct 16, 2012
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