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Do we have to sell our existing home before buying the new?

Otherwise, do we have to qualify for 2 mortgages? by jesusgonzalez159 from , California. Nov 26th 2013 Reply


Jason Vondrak (jvondrak)
#221 ranked lender in California - 1,741 contributions

If you still have a mortgage on your first home you will have to qualify for two mortgages in order to purchase a new home. If you are not able to qualify for both mortgages you will have to look into selling your current property in order to purchase second one. We are a licensed California mortgage banker - feel free to give us a call at 858-605-0952 to explore your options and determine if you qualify.

Nov 26th 2013
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,247 contributions

Correct, if it is not sold you will need to qualify for both mortgages but there is no requirement that the current one be sold.

Nov 26th 2013
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James Macon (SiouxFallsMortgage)
#5 ranked lender in South Dakota - 17 contributions

It's a matter of timing. If you currently have a mortgage and are looking to purchase a new home, your Loan Officer can omit your current mortgage from your debt to income ratio, and use the asset's of the pending sale towards the purchase of your new home. This will require that you sell your current home prior purchasing the new home though.

Nov 26th 2013
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Antonio Magtoto (amagtotojr)
#888 ranked lender in California - 36 contributions

Yes you will need to income qualify for both mortgages, unless you plan on renting the current home, you have at least 30% equity in the current home, and you can show that you have Landlord experience. Would be happy to review the numbers for you so you have a solid basis from which to make your decision. Call Tony at 714 276 1150 or email: tony.magtoto@hanafinancial.com

Nov 26th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,316 contributions

If you existing home is NOT sold prior to the closing of the new house (even just minutes before), you have to qualify for both the existing home and the new home. If you turn your existing home into a rental - there are additional rules. Contact a local California mortgage broker for more information and assistance.

Nov 26th 2013
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

No.. you don't have to sell your existing home to purchase the new home, but you will have to qualify with both mortgages if you go this route.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Nov 26th 2013
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Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,236 contributions

When qualifying for a new mortgage, any existing payments will be included in your debt servicing ratio (DTI). This means that if you already have a mortgage on the home you are leaving (or selling) that payment will be included when you are qualified for the new mortgage. If you can't qualify for the new one unless the old one is gone, then you will have to sell before you can buy. Many times we will do a double escrow, where my customer is selling the old and buying the new on the same day. It takes coordination and cooperation from all parties, but we do it frequently. This way, the new loan does not factor in the old loan because it is paid off earlier in the day we close escrow on the new property. I hope this helps you. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Certified by the National Association of Mortgage Professionals and Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

Nov 26th 2013
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Sean Young (SeanYoung)
#2 ranked lender in Colorado - 1,112 contributions

Only if can't qualify with both payments. Make sure to get a full pre-approval with a local loan officer and they will let you know for sure what your best solution is.

Nov 26th 2013
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