Home Buying in Charlotte>Question Details

Sigma, Home Buyer in Charlotte, NC

his score 730, hers 720. Current home value $200K. Amt owe $185K. Chances of selling home & finding mortgage on $375K dream home?

Asked by Sigma, Charlotte, NC Wed May 2, 2012

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Good afternoon, Sigma:
Whether you can accomplish what you want to do depends on three main things:

1. What your current home is actually worth as determined by a buyer willing to make an offer and ultimately as supported by an appraisal? If you get an offer close to $200k, you probably have enough equity to complete the sale. If the best sales price you can negotiate is closer to $185k, or if your home has a lot of deferred maintenance or is in need of updating, you may need to plan on bringing cash to closing. We can help you determine the probable list price for your home based on the comparable closed sales and currently listed homes that would be alternatives to yours.

2. Does your credit history, current income and existing debt support your dream home purchase price? If you meet the minimum criterion in the below blog link, and as long as you have average debt, I would expect that the combined income from everyone who is going to qualify for the loan should be at least $125k/yr. Getting a pre-approval from a lender will help you answer this. If your dream home is new construction You really should employ a Buyer Agent Advocate for New Home Construction (see Trulia Blog http://goo.gl/S7Q3O) If the builder offers financing and incentives, they can probably provide the pre-approval. If not, we would recommend a local lender.

3. Do you have the required down payment? You should plan on having a down payment of at least $19,000 in savings or a 401k, or as gift funds from a relative.

You should find a full time real estate professional who is willing to work with you on total commissions so that the timing of payment works with your specific financial situation. If you appreciate an answer, please give "thumbs up". For the most helpful answer, please say thanks with a "best answer" click.
0 votes Thank Flag Link Thu May 3, 2012
Sigma,

I like Lexie's answer and Dave's answer. With lending restrictions easing somewhat, you may be able to build your house. Some builders will help you with repairs on your existing house to get you into one of their houses. Repairs are the other big variable when you buy and sell houses. Have you thought about getting a home inspection on your current home or inviting a contractor friend over to see what he or she suggests?

You have great credit scores in our present economic situation! Many lenders would jump at the opportunity to provide you with a loan. Call me to get some referrals for lenders. The interest rates are just unbelievably good.

A seasoned real estate agent will guide you through the process. You do need a market analysis of your specific house in your neighborhood. I also suggest staging your house too. Yes, you should be able to make the move successfully.

Robin Faison, broker
Keller Williams Realty (Cornelius)
0 votes Thank Flag Link Thu May 3, 2012
This is the question everyone is asking. The big variable that you need to know is how much cash do you have to put down on your new house. Because your new home is over the FHA lending limits you may have to put down at least 10%. You will need to talk to a lender to determine exactly what you will need. In selling your current house you may just barely get out with out having to bring money to the table. If you sold for $200K and owe $185K that only leaves about $1000 from your proceeds after, commissions, tax stamps, attorney fees and some repairs. In other words it doesn't sound like you will be pulling your down payment from the sale of your home.
Your first step is to talk to a mortgage lender or two, and see what you would qualify for, how much down payment you will need, etc.
Although Rose (below) says she is seeing offers being "Contingent" on the buyers home being sold in Denver, in Charlotte proper, that isn't flying. We are seeing multiple offers in some situations on homes in that $350 - $500K price range depending on location. And because inventory is down so low most homes (if priced right) are selling. It just depends on what you want to buy and where it is... and what you are selling.... and where it is.
The logistics of selling and buying are not as simple as they were back in the "good old days". You will want to get an agent that will give you all the facts.... and advice on how to make your next purchase a smooth one.
0 votes Thank Flag Link Thu May 3, 2012
I would say you are in good shape. Your credit scores seem very good at this moment. The price point that you say is the value of your home is a price point that has alot of traffic in the charlotte and surronding areas currently.. I would suggest you get a real estate agent to run some comps for you to make sure the value is as you say for selling. Then start working with a local lender on getting prequalified to move to the home of your dreams. We have many homes in that price point to preview. Contingencies are working at this level and I would be glad to assist you . Visit my website at http://www.carolina-real-estate.com or call my cell at 704-607-7514 Good luck moving forward
0 votes Thank Flag Link Thu May 3, 2012
Sigma,

based on what you have written it seems like you have the credit score to qualify for a mortgage for the home of your dreams. The variable that you havenot provided is the amount fo income both he and she make a month gross. Also, need to know the amount of the monthly payments you have in liabilities each month.

The mortgage company is going to look at your combined gross income and they are going to subtract from that your monthly expenses for credit cards, car loans, student lonas, etc... Then they are going t add in what the new mortgage payment is goign to be and that number should be 45% or less. You can sometimes go a little higher becuase fo the your credit score depending on how your overall credit is.

Now, too selling your home you need to talk to an experienced Realtor in your market area. I wold like the opportunity to talk to you about listign your home and give you a anaylsis of what your home is worth. I would need some additional information in order to do that.

I need the address of the house, any improvements you have done and issues with the house. Then I can give you an estimate as to the market value fo the house. Once I look at the house in person and discuss with you everything about the house I cna give you a more accurate number as to the value of the house right now.

Please feel free to either e-mail me or call me at 704-519-7895 if I can be of any assisitance to you....

Dave diCecco
Realtor/Broker
http://www.davedicecco.com
0 votes Thank Flag Link Thu May 3, 2012
Your scores are great but you will need to speak with a lender to know what your new mortgage amount would be. I have preferred lenders that I can suggest in your search. As for the selling of your home, this will depend on your market conditions in your area. I have recently helped a couple achieve this scenario and it took less than six months. Your home selling is key on time frame. Call or email me to get started!
Regards,
Erica Wilson
RE/MAX
704-467-6673
Ewilson@remax.net
Web Reference: http://ncre.co
0 votes Thank Flag Link Thu May 3, 2012
Hello Sigma,

If you would like to contact me directly I would be happy to put you in contact with my lender to discuss your ability to qualify for a loan to purchase your dream home. I will also provide you with a CMA to determine what your home may sell for in the current market. If you have any other questions feel free to call or email.

Have a great day,

Michael Laine
cell- 704-619-3971
email- michael.laine@prucarolinas.com
0 votes Thank Flag Link Wed May 2, 2012
Where is your current home and where do you want to live? It is definitely possible, but a pre-qualification letter from a lender as well as CMA on your current home are the first steps to take.
0 votes Thank Flag Link Wed May 2, 2012
E-mail me directly and I'll do a free market analysis to let you know what I think your home would reasonably sell for. Also, I can have my lender pre-qualify you - no cost or obligation either way.

John.Siddons@prucarolinas.com

John Siddons
704-458-1843
http://www.johnsiddons.com
http://www.searchcharlotte.com
0 votes Thank Flag Link Wed May 2, 2012
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