Home Buying in Middleton>Question Details

Daniele Carl…, Home Owner in Middleton, ID

we are looking to buy a new home to get lower payments then what we are paying now on are house. How hard is it to buy a house if you already own one?

Asked by Daniele Carlock, Middleton, ID Tue Mar 29, 2011

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6
It can be difficult, but there are many different paths you can take. Some are easier than others. I closed one for a past client earlier this year and his lender made him qualify for both homes and even tried to call his new home an "investment" property although I got that over ruled for him! A different lender he talked to wanted him to put a larger down payment since he was going to own a second home and I helped him find one that could take advantage of a unique loan available since he was buying a bank foreclosure.

1) If you sell the current home, no problem turning around and buying another home (even simultaneously) provided your credit scores allow the new purchase.
2) If you don't have a year history of being a property manager, you might have to qualify for both house payments. (even if you plan to rent out the current home)
3) If you move at least 50 miles from the first home, new rules apply.
4) Some lenders offer "portfolio" loans where they don't resell your mortgage and they may not care if you own a second home.
5) Private money lenders - even though the interest is typically higher, taking advantage of the lower house prices right now can make sense.
6) Loan assumptions - you might be able to assume someone else's mortgage.
7) Some bank REO's have looser qualifying guidelines.

Talk to different types of lenders and you will get different answers. Just like how you got different answers from different Realtors. Realtors are typically "independent contractors" so even Realtors in the same franchised brokerage will typically give you different answers based on their experience in our industry and the type of clients they typically deal with.

I hope this helps instead of confuses you with several different options. I feel my role is to be more of a consultant - pointing out options until you are comfortable making a decision that is right for you and your family.

Sincerely,
Jim
0 votes Thank Flag Link Wed Mar 30, 2011
Depending on your credit score, what you are planning to do with your current home, rent it or lease, it should not be that difficult should you qualifiy for the loan. Just find a good lender or in the meantime speak with the lender you currently have. Just expect to be ask a lot of questions and be prepared to provide your documentation.
0 votes Thank Flag Link Tue Mar 29, 2011
Hi Daniele,

I would be happy to talk to you about your current situation. I'm at Century 21 Lindbloom Realty in Middleton. Please feel free to contact me at 921-6457 or e-mail me at jbeeson05@gmail.com.

I hope to hear from you soon.

Julie
0 votes Thank Flag Link Tue Mar 29, 2011
Daniele,

It would depend on if you can qualify for a loan on a second home. Would you be leasing out your current home to meet the payments or putting it on the market? Even if you do that a lender won't count your income from the lease as part of your income. You would be best to start with meeting with a lender to see if you can qualify then start talking to a Realtor to find a home that would be suitable. If you need a recommendation for a lender and a Realtor in the area who would be realiable I would be happy to e-mail them to you.
0 votes Thank Flag Link Tue Mar 29, 2011
Daniele,

Great question! I hear it at least a couple of times a week. Simply put, it's not that hard--if. The 'if' however is a cocktail of realities like; creditworthiness, income and debt--just like when you bought the first. The other "if" is more specific to loan type: conventional or not.

You're going to get at least 5 answers here about your question, and in the time you took read them and understand them all, you could have already spoken to a good Lender and heard it from the horses mouth, which, just so happens to be my first recommendation.

If you'd like a couple of great Lenders to talk to about your question, let me know: aaronc@o2marketinggroup.com or 208-724-7602 I'll give you some names and numbers and within just a few minutes, you'll have a firm understanding of just how hard it will--or won't be!

Thanks,

Aaron
0 votes Thank Flag Link Tue Mar 29, 2011
Daniele,

It's not hard if you have the credit and income to support it. Expect to jump through some hoops to prove to the lender that you're not going to "buy and bail."

This has been a common issue in markets nationwide where owners owe more than their house is worth and buy another at a better price and let the lender foreclose on the previous.

A good mortgage loan consultant can help you out with the steps needed to qualify and then it will be time to find a home that will work for you. I can refer you to a couple great lenders if you don't have one already.

Respectfully,

Brian Brumpton
0 votes Thank Flag Link Tue Mar 29, 2011
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