Home Buying in 60444>Question Details

Investor, Both Buyer and Seller in 60444

hey can a person who just bought a home and has since found another property of less value put the loan on the new house?

Asked by Investor, 60444 Tue Jan 25, 2011

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In short, yes; as long as you can get a pre-approval for another loan.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Tue Jan 25, 2011
You are an investor. Check with your bank. Many banks have cap per investor, for example one bank may cap you for 1.5M and two property limit. If you still under that cap you might be able to finance your second investment.
0 votes Thank Flag Link Tue Jan 25, 2011
Buyer's remorse has it's cost. If you closed already, to sell that house you bought in this market would incur transaction expenses plus loss on sale compared to what you paid. Plus unless you qualify for 2 mortgages don't see how you could own two unless you rented the first one. Underwriting has gotten really tough on investment mortgages. if you are not closed but pending close, as mentioned you risk earnest money. If however you lose 10K in down payment but like the 2nd house 20k more, you come out ahead bailing on the first deal. You need to get legal advice to define your options and pitfalls.
0 votes Thank Flag Link Tue Jan 25, 2011
It clearly depends if you closed on house number 1, if you closed on it, you will need to apply for a new loan for the new house. If you have not closed, it depends if you can get out of that first contract, if you have contingincies or not? you should ask your buyer broker for guidance, if you are buying alone, then you should seek the advice of an attorney to review your contract.
0 votes Thank Flag Link Tue Jan 25, 2011
Hello Investor,

I am assuming you didn't close yet on home number 1. If so, and you decide to just walk away from it you risk your escrow (deposit) to go after another house. If you have a property inspection contingency on home number 1, you may be able to use that as the reason for not purchasing the home and get your escrow back.

The bank probably doesn't care which property you purchase. It comes down to being under contract on one home but wanting to purchase another. Legally, you are bound to house number 1 unless there is a contingency you can use to break the contract. Consult with your real estate agent to decide how to go forward.


Joe Finnerty
Long & Foster Real Estate, Inc
Lehigh Valley Office, PA
0 votes Thank Flag Link Tue Jan 25, 2011
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