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Is is harder to qualify for a purchase loan when you have to sell your house first?

We are moving to a new house but we must sell our existing house to qualify and come up with the down payment. Will that cause any issues with qualifications for us? by sandeepg556 from Irvine, California. Feb 16th 2017 Reply


If you have a good amount of equity in your departing residence, then you might be able to secure a bridge loan, which is a short term loan to secure the new house while the old house is being sold. These loans typically have higher interest rates than conventional loans, however it is a short term solution to bridge the gap between selling your existing home and moving to your new one. I can assist if you'd like. Please let me know.Thanks,Chris RahnMortgage BankerMacoy Capital310-897-2502Chris@MacoyCapital.com

Feb 16th 2017
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,797 contributions

If you make enough income to qualify for both mortgage payments, then you can buy first and then sell.. but if you need funds from the sold home to purchase, then that wont work.. So qualifying wont be a problem.. we just note that the funds for down payment are coming from a pending sale.. however, it could be a problem for the seller of the home you are looking to buy.. Your offer will have a contingency.. stipulating that you must successfully close on your home before buying theirs.. this can be troublesome for some sellers.. but a good loan officer and good real estate agent can be very good at communicating with the seller and sellers agent, and explain to them the strength of the buyer of your home and how clean the deal looks.. and they can also pump you up and explain how strong of a buyer you are.. The key is to surround yourself with competent professional people, and your chances would be much greater at getting an accepted contract.. I'm here if you need help.. William J. Acres, RPM Mortgage California/Arizona NMLS# 226347, 480-287-5714. WilliamAcres.com

Feb 16th 2017
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Edgar Aranda (earanda)
#720 ranked lender in California - 91 contributions

Feel free to contact me today & I can answer any of your questions or concerns. (858)663-0472

Feb 16th 2017
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Mike Cuervo (mike@loansbynorthstar.com)
#1301 ranked lender in California - 7 contributions

The application you submit will reflect the sale transaction you are anticipating. The underwriters for your new loan will take that into consideration but will require the completion prior to funding your new loan. Feel free to give me a call and I can walk you through the process. Steve Adams, Northstar Financial, 25301 Cabot Rd #206, Laguna Hills (949) 887-7814

Feb 16th 2017
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Larry Gray (lgray_312_247)
#4 ranked lender in California - 1,127 contributions

I have done a lot of purchase loans wherein the sellers had to either rent their current home out or sell it. Often borrowers chose to rent out the current home and we were able to qualify them for the purchase without having to include a huge PITI in the debt to income ratio, for qualifying. If you have sufficient funds for at least a 3% down payment on the new primary home purchase and to cover much of the closing costs, then this might be the route you want to go. Otherwise, you can certainly try to purchase a home contingent on you selling your home. If someone needs to sell there house and the market has slowed somewhat in their area...that person might be willing to sell it contingent on the buyers selling their home. As you likely know, the other route people take is simply to wait until they have sold their home along with getting a rent back agreement with the buyers for perhaps up to 90 days while you look to buy a home...or find a temporary abode and storage until you buy.

Feb 17th 2017
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