I have not sold my current home yet but have found the home I want to purchase in Atlanta, GA for $399,000.00. I can only put 5% down. Will I qualify?

Asked by nancygreen007, Atlanta, GA Sun Oct 7, 2012

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11
Susan Bird, Agent, ATLANTA, GA
Mon Mar 10, 2014
I have some outstanding lenders to reccommend
0 votes
Jackie Dyer, Agent, Atlanta, GA
Sun Oct 14, 2012
Hi Nancy,
You are going to get the same answer from everyone, contact your lender first. If you need a list of good lenders or ready to interview Agents to assist you through the process, feel free to contact me via email or phone to talk more.

Jackie Dyer
jackie.dyer@coldwellbankeratlanta.com
404-291-0796
0 votes
Elizabeth Wa…, Agent, Atlanta, GA
Wed Oct 10, 2012
Hello nancygreen007, congrats on finding the home you want to purchase! It sounds like you'll
have two mortgages until your current home sells yes? You'd be best served by talking to an
experienced lender who can evaluate your financial situation and advise you accordingly.

I'd be pleased to put you in touch with one of our in-house lenders. Please feel free to email/text
or phone me.

Good Luck w/your plans!

Sincerely

Elizabeth 'Beppy' Walton, Realtor
ASP, CFIS, DPP
Keller Williams
C/404 234 9418
0 votes
, ,
Mon Oct 8, 2012
Hi Nancy,

It all depends on whether or not you can qualify with BOTH mortgage payments counted against your income.

You're looking at a conventional mortgage (Fannie Mae/Freddie Mac) since the loan amount is over the county limit for FHA and that means more restrictive guidelines/requirements.

Your best bet is to speak with an experienced mortgage professional to find out what your options are.

Please feel free to contact me for more information or help.

John Burke
Senior Mortgage Banker
Peoples Bank & Trust Co.
(877)228-9069
0 votes
, ,
Mon Oct 8, 2012
Until you have been Pre-Qualified, there is no way to possibly know that answer. Everything else would only be pure speculation.

Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified you purchase, you can submit your request online at http://www.rodneymason.com.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing
.
0 votes
Veronika Bar…, Agent, Roswell, GA
Sun Oct 7, 2012
Hi Nancy,

Congratulations on finding a right home! To see how you can make this work, call Kathy Vitali/Fairfield Mortgage, 770-540-5566. It's locan lender and absolutely great to work with!

Is your old house listed yet? If you are interviewing agents, I would appreciate a chance to present you with my marketing plan & price analysis.

Cordially,

Veronika Barash, Realtor®,


CERTIFIED SKILLED NEGOTIATOR

REO & SHORT SALE CERTIFIED

CERTIFIED MARKETING SPECIALIST

RELOCATION SPECIALIST


http://www.AtlantaSelectHomes.com


678.230.4235 c

678.287.4800 o

404.410.6983 f



Keller Williams Realty Consultants

695 Mansell Rd. Ste 120

Roswell GA 30076
0 votes
Hank Miller, Agent, Alpharetta, GA
Sun Oct 7, 2012
In almost every situation I advise against juggling like this, what if something doesn't go right? The "landlord" option isn't one I recommend either, this is simply delaying the inevitable. You still have to sell the home sooner or later, now you also have to manage a home, collect rent and pay for updates when it's time to sell. The market isn't going t appreciate significantly so don't expect that.

There are too many variables to be concise but just understand that betting the house on the housing industry isn't smart.

Hank
Web Reference:  http://www.hmtatlanta.com
0 votes
Ken Guillen, Agent, Duluth, GA
Sun Oct 7, 2012
Ms. Green

Teh ealier responding agents/realtors are completely correct in recommending you speak to a senior Loan officer. If you like your bank, see if hey can refer a very good loan officer. If you are with a mortgage broker rather than a bank then likewise speak to them for a refered loan officer. My reasoning here is that your bank or mortgage broker has a Mutual Interst in your property and decisions made will reflect that mutual interest.

There are many good and professional loan oficers...I can efer at least two. In the higher price range you note, you would have a hundred or more lined up to apply for the loan application opportunity. It would be a good income producer. AGAIN, THE BEST PLACE TO START IS WHERE YOU ARE ALREADY VESTED . Your curent bank/lender will want to win as much as you do.

On renting or leasing your home ther is some concern. Yes it is likely home values will increase again but it is questionable if they will come back to previous levels. Mr allison was fair in saying they would at least come back to the "cost to build" which could be enough to help you clear the amount owed on your current mortgage. It may be OK to take a LOSS on the current home if you can SEE that you are PICKING THAT LOST EQUITY UP ON THE NEW PURCHASE YOU ARE CONSIDERING..............These are precarious decisions and your Buyers Agent should do a VERY COMPLETE analysis on the home of purchase consideration to see if it is below market and will come up to at least a relacement costs amount that would cover ay loss on your current homes's sale........................In today's world and market, the brightest and most cunning managers are often just forced to take some losses but "move own" less they drown in Morose feelings for an extended period.

Back to leasing/renting. When you rent/lease, you have a set period of time to Sell the property after you move out (If rule has not changed..you must live in it for 2 of the last five years. So it would be good if I interpet this correctly to have it sold before 5 years from your departure. After you start renting at some point (Let CPA advise) you have to start taking Depreciation on the curent home on your taxes. If you exceed the allwed time (lived in 2 0f 5 years) you might have to re-capture 5 years + of depreciation at 25 percen of the depreciation total taken in that period. THIS IS A CONSIDERATION BECAUSE, .........IF MARKET VALUE DOES NOT RISE AND YOU BROKE EVEN ON A SALE (No capital gain) then you would still have to take or PAY the 25% tax on depreciation. If it becomes rental property you have a gain curently that is 15% but if liberal views prevail you could look at 30% capital gains. SO NOW, WE EVEN HAVE POLITICS INVOLVED. That would decrease your gain and again be a consideration on how you make a "all encompassing view" of your situation.

To do a "Short Sale" you would have to prove a hardship and all household income is involved.. If the home is in one spouses name and despite both incomes being used in a short sale and you qualify for the hardship...then the NON- Titled spouse on the current home might then qualify (alone) for the new purchase. A competent loan officer would let you know!

THIS WRITER CAN'T UNDERSTAND HOW A REALTOR WOULD WANT A 30% CAPITAL GAINS PROMOTER.. IT WILL ONLY MAKE REAL ESTATE A BIGGER LOSER!!!!!!!

Shold you have questions, feel free to contact me for an explanation of my thoughts. I don't have to be your agent. We have all been battered enough and friendly help is allowed.

Ken Guillen, Associate Broker, Certified REO Specialist ((did not fully proof read)
0 votes
Bruce Ailion, Agent, Marietta, GA
Sun Oct 7, 2012
Nancy, It is a question for a mortgage lender to answer. The market has improved and if your home is priced correctly professionally marketed, it should sell within 60-90 days. Market price may not be a number you can or are willing to accept without a personal loss and or your lender sharing that loss in a short sale.

Many sellers we work with conclude they do not want to experience the equity loss and/or do not qualify for a short sale. These sellers become reluctant Landlords. We can assist you determine the rental value and net income you can expect from leasing your current home. Your lender may give you partial credit for rental income but in all likelihood not, particularly since you are still occupying the property while qualifying for a new home and there is no rental history.

For many owners leasing their present home is the best option. In some instances it covers their mortgage costs. Interest, taxes, insurance, repairs are now all tax deductible and you can depreciate the rental property which may allow you to reduce your personal income tax due to the non-cash depreciation deduction. Your tax advisor can provide more information.

Just as virtually everyone in 2005/2006 thought real estate appreciation would never stop, and 2011/2012 people think real estate values will never return, the masses are generally wrong. We can expect prices to return to no less than the replacement costs as the economy recovers as it always does. Selling at the bottom of the market only makes sense if you have to.

Feel free to give me a call or e-mail for additional information.

Thanks,

Bruce Ailion,
RE/MAX Greater Atlanta
An Atlanta Real Estate Expert Serving Clients Since 1979
RE/MAX Hall of Fame – REALTOR Phoenix Award
CRS, CRB, ABR, MSRE, CDPE, CIAS, e-PRO, ESQ
Certified Residential Specialist
Certified Real Estate Broker
Accredited Buyers Agent
MS Real Estate and Urban Affairs
Certified Distressed Property Expert
Certified Investor Agent Specialist
Certified Internet Professional
203K Certified Specialist
Attorney
2050 Roswell Road
Marietta GA 30062
404-978-2281 Direct
404-386-3682 Assistant Robin
678-760-6266 Buyer’s Agent Adam
770-973-9700 Office
bruce@locationlocationlocation.com
http://www.LocationLocationLocation.com
0 votes
Lee Taylor, Agent, Decatur, GA
Sun Oct 7, 2012
Nancy, please get face to face with a smart mortgage lender on Tuesday.

Your question is not something that anyone on the internet can just guess at.

Try calling Rodney mason - he is a Trulia Voice and a very knowledgeable mortgage pro.

His info is in the web reference.

Are you interviewing real estate agents to help you with your purchase, sale and / or lease decisions?
0 votes
Brian White, Agent, Decatur, GA
Sun Oct 7, 2012
That is a question for your lender. There are lots of factors which contribute to your being able to qualify or not. Such as amount of reserves you have, amount of your current payment, what your plans are for the first home. Sit down with your lender and explore your options.
0 votes
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