I am looking at selling or renting my existing home and purchasing another. Any suggestions on best way to proceed?

Asked by mom24xxs, Chesapeake, VA Tue Aug 27, 2013

I am considering renting out my exisiting house because what I owe on my 1st and 2nd are very close to what market value and thinking it might be better to just rent for a year or 2 and then sell. Problem is I'm worried not selling will make my debt to income ration too high to qualify for mortgage on the new place.

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22
Kevin Richey, Agent, St George, UT
Wed Mar 26, 2014
I would start with a good lender. Usually a mortgage broker will have more options than a bank or credit union. The information you receive from your lender will probably help you establish the best way to proceed. Some lenders will require 20% down for a second home purchase. They might also want to see s rental agreement for the home you plan on renting out.
0 votes
Debbie and B…, Agent, Chesapeake, VA
Wed Mar 26, 2014
Hi there! Great question.

First determine the market value of your home. Do not rely on the city tax assessment. You do need a market analysis completed on your home and neighborhood by either a REALTOR, or a pre-appraisal. I can provide both.

After determining the value and your net (if any) then I would arrange for you to speak to a local lender to determine your qualification based on your present home. We cab determine if you can qualify to purchase and keep your existing home and rent it.

If can assist you, please call or email me. Best of Luck!!
Debbie Rountree
Expericed Local Realtor

Rose and Womble Realty
drountree@roseandwomble.com
cell - 757-648-0999
fb - RountreeProperty.com
0 votes
Bryan Cerny, Agent, Chesapeake, VA
Wed Mar 26, 2014
Very Interesting question!!! With the current market in 2014, you may not be as close as you were in August when you first asked this great question.

We would need to speak and discuss the specifics of your situation. By knowing your home, sharing rental values and present home sale value along with understanding your new home desires, we together can ensure you "Always Make the Smart Move".

Call today: 757 580-6546 for setup confidential and no obligation meeting! You can also email me at bcerny@roseandwomble.com
0 votes
Ann Markley, Agent, Chesapeake, VA
Thu Sep 19, 2013
This a great question and you may want to speak with a loan officer before considering purchasing another home with your obligation and concerns on high debt to income ratio. It may be worth talking to your bank, (1st and 2nd) to see if they would consider a Short Sale or Loan Modification. Have you spoken to you lender's about this at all. I specialize in Short Sales and can take care of all the details for you and the Lender pays all the fees if agreed upon by both Lenders. The first step is to set up a meeting to go over the details of what is required of a short sale. Let me know if you are interested in meeting to get some Free Advice so that you are able to move forward with your plans soon.
Ann Markley, Exit Realty Central (Direct# (757) 513-0434)
Web Reference:  http://www.AnnMarkley.com
0 votes
Lisa Arnold, Agent, Chesapeake, VA
Fri Sep 13, 2013
Hi there. Not sure if you got the help you needed or not but I can help you sort thru this. You have different options. Visit my website at http://www.myrealtorlisaarnold.com. Hope to hear from you :)
0 votes
Pam English, Agent, Chesapeake, VA
Sun Sep 8, 2013
Great Question! There are a lot of home owners in the same situation. First, I recommend speaking with a reputable local lender that can provide you with your best options before you try to make a decision. If you do not have a personal relationship with a lender you know and trust, I will be happy to recommend someone. Remember, it doesn't hurt to get a second opinion either! I am available to answer any questions that may come to mind and assist you when you are ready.

Pam English, REALTOR, ePRO
Licensed in Virginia
Keller Williams Elite, Western Branch
4016 Raintree Road, Suite 300A
Chesapeake, VA 23321
(757) 287-5990 direct
homes@PamEnglish.com
PamEnglish.yourKWagent.com
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Jayne Gluck, Agent, Virginia Beach, VA
Sat Aug 31, 2013
good evening, everyone here has provided you with expert advice the main starting point is talk to your loan officer to see what your financial options are and then move forward. if you need any further information please feel free to contact me at Exit Realty Specialists, 757-770-9312
0 votes
Joe McAvoy, Agent, Newport News, VA
Wed Aug 28, 2013
Hello,

You are smart to evaluate your best options before moving forward with your plans. I am happy to offer a no-obligation fair-market resale and rental evaluation of your home to help you determine the best course of action. If you have need of a recommendation for an experienced mortgage consultant, I am happy to provide you some names.

Whether you choose to sell the home or rent the home, I look foward to serving you in this important endeavor. Feel free to reach out to me anytime with questions or service requests.

Joe McAvoy
268-5123
Web Reference:  http://www.goLEGRAND.com
0 votes
Denise Mann, Agent, Moyock, NC
Wed Aug 28, 2013
I just had a client that had a similar scenario. Ended up renting their home in Va Beach and they purchased new construction in NC....in July. They found the home that made them want to move first, then we looked at ways we could make that happen. Call me ~ so we can discuss how we can Make YOUR Dreams Bloom~ Denise 757-286-4729
0 votes
Falon Wingo, Agent, Suffolk, VA
Tue Aug 27, 2013
Hi There!
A few things will help you determine what move to make next :

1. Know the Numbers: Find out from a Realtor what the current market value is for your home and what homes comparable to yours have rented and sold for in the last 90 Days.

2. Talk to a Lender: After you know your numbers contact a lender, possibly your original lender if you were happy with them, and let them know what you are trying to do. The lender will be able to view your ratios, home value & credit to determine what the best course of action is.

3. Hire a professional: Now it's time for you and your chosen Realtor to sit down and go over a marketing strategy to rent/sale your home and find you a new home you will love!

Hope this helps!
Call/text me if you need additional info. 757-770-8736
0 votes
Debbie and B…, Agent, Chesapeake, VA
Tue Aug 27, 2013
Good Morning - First step is to interview seasoned REALTORS that are very familiar with your neighborhood and city. We can share with you the market value - the cost to sell vs renting your home. Determine value and then speaking with a mortgage lender would be your first steps. What is going to be the best option for your and your family? We can help you with these decisions.
We are natives to Chesapeake and have been in the business of helping families reach these goals. Would love to meet with you to assist you with this very important decision. Give us a call or email me. Glad to help!

Debbie Rountree
Rose and Womble Realty
628 Cedar Rd. Chesapeake
direct cell - 757 648-0999
drountree@roseandwomble.com
0 votes
Matilde Larr…, , Virginia
Tue Aug 27, 2013
You will need to qualify first with a expert loan officer and see if you can purchase a new property and maintain the one you currently have. Once you know if you are able to keep both properties or even if you need to sell contact a realtor that has knowledge of your area. Ask the realtor for a CMA study.. Once you have a CMA you will be able to make a more prepared decision about staying at your property or selling.
I can refer you to an expert realtor in your area. Mati Larroque 571344 2701 Coldwell Banker Residential
0 votes
Jami Addesso, Agent, Chesapeake, VA
Tue Aug 27, 2013
Hi, my name is Teneka Boone. I am an agent with Creed Realty. If you would like to give me a call to discuss options on the sale or renting of your home, please gine me a call at 757-576-6347.
Or you can email me at tenekaboone@gmail.com.
Thanks!
0 votes
Drew Brooks, Agent, chesapeake, VA
Tue Aug 27, 2013
Mom24xxs,
I would recommend talking to a lender officer. I would then would love the opportunity to talk to you and discuss what would be the best option for you and your family.
Drew Brooks
William E. Wood & Associaties.
128 Battlefiled Blvd. N
Chesapeake, Va
757-774-5868
drewbrooks@williamewood.com
0 votes
Bryan Cerny, Agent, Chesapeake, VA
Tue Aug 27, 2013
This is a great question!! Your concern regarding debt to income ratio is valid. A bank will give credit for profit on the rental of your home in approving you for the new home mortgage. There is no doubt you will qualify for more by paying off the present home as you purchase the new home.

You note that your home's mortgages are close to the market value of the home itself. A detailed market analysis and comparison to rents for your home would help you immeasurably to evaluate your options.
I can meet with you and provide a free evaluation to ensure you "Make the Smart Move".

Please call or text me at 757 580-6546.
0 votes
Bruce Baker, Agent, Chesapeake, VA
Tue Aug 27, 2013
Mom24xxs,

At this time, it may be best to wait until you get more equity in your home. To sell may put you into a short sale situation that will require approval from your lenders. Also, to rent\lease your home, most lenders will require that the home be rented for at least 6 to 9 months before you could be considered for another loan.

Talking to a loan officer will help with your question. Call Robert Temple, Old Virginia Mortgage at 757-777-8454.

Bruce Baker - REALTOR®
ABR, GRI, e-Pro, SHS
Keller Williams Realty
1100 Volvo Parkway Suite 200
Chesapeake, VA 23320
Direct: 757-636-3781
Office: 757-361-0106
Fax: 757-410-5864
Email: AskBruce@FreedomHomeSearch.com
Web: http://www.FreedomHomeSearch.com
Licensed in Virginia

'Oh by the way, I am never too busy for you or your referrals.'
If you are currently in a brokerage relationship with another agent, this is not a solicitation.
0 votes
Holly Herbert, Agent, Yorktown, VA
Tue Aug 27, 2013
Hello,
Your first thing to do would be to talk to a lender, to find out if you could qualify for a second mortgage while renting out your house. The second thing you would want to do is interview Real estate agents. An agent can give you a good idea of what your house is worth, and price it correctly, it may be way off of what your thinking. Also Agents are able to do a sellers net worksheet, to see what you would be able to walk away with a different prices. If you'd like to discuss your options, call or email me today so we can talk. Hope to hear from you soon.

Holly Herbert
Amanda M Walsh Real Estate
757-358-3878
Holly@amwre.com
"Licensed in the State of Virginia."
0 votes
Fred Herman, Agent, Staten Island, NY
Tue Aug 27, 2013
Find a Realtor to look over the details and advise you how to proceed.
0 votes
Mary Lee Alm…, Agent, Chesapeake, VA
Tue Aug 27, 2013
You are absolutely correct. I would suggest we get together and determine the market value of your current home, then put our heads together with a good mortgage broker to determine the best course of action for you. I have another client currently in a similar situation. If you would like my help you can reach me at 409-0269.
0 votes
Michael Karl…, Agent, Chesapeake, VA
Tue Aug 27, 2013
You can call or text me at 757-477-1202 or email me at mkarlins@cox.net
0 votes
Michael Karl…, Agent, Chesapeake, VA
Tue Aug 27, 2013
If you would like there is a loan officer in my office. I can have him call you. In less then 15 minutes he can preapprove you for a loan.
0 votes
Michael Karl…, Agent, Chesapeake, VA
Tue Aug 27, 2013
Talk to a loan officer and he can tell you if that is an issue.
0 votes
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