The Mortgage Bull

Jeff - when you make your mortgage application, generally speaking, you do not have to have your home on the market. However, by the time the loan goes to underwriting, your home should be on the market. If you are confident you are about 2 1/2 week to 3 weeks from placing the home on the market then you should be fine. Just make sure that the contract for the new home does not require you to close in 3 weeks. It might be best to give yourself a little buffer and put the closing for your new home 45 days out - just to give you time to complete the repairs and place the first home on the market prior to underwriting receiving the file. - Wed Sep 10 2008, 12:06

There are several programs available in Houston especially if you are a minority. One is called Houston Hope Home and another is the American Dream Down Payment Assistance program.
You can find some information on this link:
http://www.houstontx.gov/houstonhope/qualify.html. Good luck! - Fri Sep 5 2008, 11:00

Normally it shouldn't take more than a few days. However, it sounds like they are having to send your loan through a manual underwriting process...which does lengthen the process a bit. Add to it that you are nearing the end of the month and with the government doing away with seller funded down-payment assistance programs effective October 1st, a lot of lenders are seeing a bit more of a back log as people try to get their loans closed. That being said, if you have sent in all the information the loan officer has requested, I would wait no more than 5 business days from the date you got the last requested piece of documentation in to your loan officer. Then I would call and request an update. If he/she doesn't have an update, I would suggest a very honest discussion with your lender. Keep it professional, but explain that you feel you are wasting precious time and feel you might need to begin looking at other lenders.

If you do end up going to another lender, provide that lender with ALL of the updated documentation that you provided the first lender. That should prevent any additional requests for paperwork. - Tue Aug 26 2008, 15:26

Here is the income that you can use currently. The income from your part time job can be used. You will also be able to use your wife's social security income. Some lenders may even allow you to gross up your wife’s social security income by as much as 125%. (For example, if she brings in $400 per month in SSI, some lenders will let you gross it up to $500 per month.) You can also use whatever interest you are earning on your investments.

Add these monthly figures together and multiply the total by 40%, and that will give you a general idea of how much of a mortgage payment you will qualify for. Keep in mind that monthly figure must include a figure for whatever your taxes and insurance are on a monthly basis. - Mon Aug 25 2008, 15:25

The note always supersedes the divorce decree and, unfortunately, the bank will not take your name off of a loan unless it is refinanced. - Mon Aug 25 2008, 10:36