Annabob, Other/Just Looking in Springer Ranch, Peoria...

I currently own a 3 bedroom, 1,200 sq. ft. home with an assessed value of $80k and would like to move up to a larger home. Must I sell first?

Asked by Annabob, Springer Ranch, Peoria, AZ Sun Oct 2, 2011

What are my options? I have never been late with a payment and owe approximately $5k more than the assessed value.

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Answers

6
Peggy’s answer
Rent it out. The RE in AZ is hot whether you sell or rent. I am not a Realtor but it got expensive so fast down here in central phx that I couldnt afford to buy a home in this area. So I bought a home in Peoria AZ. Rents in AZ are going through the roof...id keep it and flip it in say a year if you want the cash....best always!

P
0 votes Thank Flag Link Sat Feb 23, 2013
Anna. . You do not have to sell first if you can qualify for the second home with out selling your current property. Income and employment can be factors of what you may qualify for. A prequal with a lender of your choice will determine what you your next step will be.

If you would like assistance with a value of you home or a lender in your area. Feel to contact me for any questions.
0 votes Thank Flag Link Mon Oct 3, 2011
First you need to be careful when you refer to assessed value. Usually the term assessed value refers to the value assessed by the tax authority, which has very little to do with the actual market value of your home. So before assuming that your house is worth $5k less than what you owe I suggest you talk with a REALTOR who can give you a better idea of your house's market value.

Depending on your credit and your income and debts you may qualify to buy the new house before selling yours. A REALTOR should be able to help you figure this out.

One option you may have, depending on the local market, is to rent your current home and buy the new one.

Good luck

Jose Dias, REALTOR
623-418-5700
Jose@MyFirstHouseAZ.com
0 votes Thank Flag Link Sun Oct 2, 2011
Paulette hit it right on the head! Another option would be to possibly rent out your current home, and then ask your lender how long it has to be rented and how much of the rent they will accept as income, and you could possibly qualify for that second home while still owning your current home. I would say your first step should be to meet with a lender to discuss your options! Good Luck!
0 votes Thank Flag Link Sun Oct 2, 2011
If you are paying cash for your next home, you can buy at any time. If you are financing it, you will have to be pre-qualified. If you cannot qualify with 2 mortgages, you should go ahead and sell the first home, then purchase the second one. I would be glad to help you. My email address is PauletlteDavis@cox.net.
0 votes Thank Flag Link Sun Oct 2, 2011
Hi Annabob,

It really depends on your debt-to-income ratio because you'll have to qualify with your current mortgage and the new mortgage.

I suggest you speak with a local mortgage professional to discuss your options.

Best wishes,

Elva Wormley
C2 Financial Corporation
0 votes Thank Flag Link Sun Oct 2, 2011
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