he just refi'd w/ Wells Fargo & now a house we want is back on market - if we apply together for mrtg will we Qual? primary res status is

Asked by Denise, Horsham, PA Mon Oct 24, 2011

our concern when he applied to refinance he was asked if it will be his primary residence for the next 12 months .... which was the plan at that time. this is a no appraisal, no fee refi that will settle in 3 weeks. we got a call 2 days after he initiated the process that a home we'd bid on and lost was back on the market with fast settlement of Nov 30. This is a rush to contract deal and with the no contingency offer we'd made we are now concerned that when we apply for a mortgage together for this home we will be declined due to the terms of the refinance - has anyone been through this? will this be something that the mortgage company will be stickler about? we can rent his place out with no problems and cover the mortgage but we're concerned that the primary residence issue will disqualify us and we can't take that chance and lose our deposit.

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, ,
Mon Oct 24, 2011
You would have to qualify with both mortgages probably no matter what (unless there is sufficent equity in the first to allow you to count the rent). If you want to buy this home and use it as your primary residence, then you need to cancel the refinance of your current home unless you are willing to classify it as an investment property and incur the additional rate and fees. If not you are commiting fraud. Should you cancel the refi, it would only be right to give this guy first crack at the mortgage for the purchase. However be careful and make sure of there turn aorund times as you are under the gun a little bit. If I can be of any assistance, please do not hesitate to contact me.
0 votes
Benjamin R.…, Agent, Philadelphia, PA
Tue Oct 25, 2011

You've gotten good advice below. I would pay special attention to Joe and Larry's advice. It is the most applicable to your situation.

Good luck!

1 vote
Larry Lichtm…, Agent, Bala Cynwyd, PA
Mon Oct 24, 2011
Hi Denise,
If you can qualify with him as a cosigner, it may not be an issue. You should call an experienced mortgage broker to discuss your situation and concerns and maybe get pre-approved. I would suggest you contact
Ed Dubinsky 215-808-5353, edubinsky@ahmcloans.com. He's very helpful.

Good luck. If you would like to discuss preparing the offer with the necessary clauses, terms and contingencies to protect your best interests in all situations, I'd be honored to assist you and make it a seamless, smooth transaction. Please feel free to call me anytime with any real estate related questions.
All the best,
Larry Lichtman
REALTOR, Property Manager
Your Real Estate Resource For Life
Cell/Text: (267) 254-7994
1 vote
Binnie Bianco, Agent, Conshohocken, PA
Mon Oct 24, 2011
You have the right to cancel the refi and move forward on the purchase.. You may need to sell your home if you don't qualify to carry both loans. If that is the case, when you purchase the new home you will need to have a "home sale contingency" which may not be appealing to the sellers. If you need any further help you can contact me. Binnie Bianco, Century 21 Alliance - 484-576-7219.
0 votes
, ,
Mon Oct 24, 2011
Hello Denise,

your refinancewith Wells Fargo is in process.. If you now sign the documents stating that this will be your primary residence even though it will not be then you will be committing mortgage fraud. Y. ou will have to sign the same documents again to that effect. Nobody has access to the terms of your refinance so it would not disqualify you from buying another house. However, my question is " Can you afford both mortgages?"
You should stop the refinance process, get approved for the new purchase and you will be fine.

Call me if you would like to discuss this further. It is clear that you are not comfortable discussing this with your mortgage lender or you would have done it already. I am a Local broker Warminster) and can guide you through the process and get the loan to closing by November 30th. Give me a call on my cell. 267 992 7276

Best Regards,
Alan Openshaw
Cornerstone Lending
Southampton Pa
267 992 7276
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