how does it work when you dotn know if u can even sell your own house? i need to move next year, i cant put the house on the market until may but i need to be out of there by june or july, how does that work my credit would never let me have 2 mortgages!nor could i afford it, so how do so many people build houses then while they live in and pay for their current home?
2006-08-18 05:51:00 · 4 answers · asked by toolate 3 in Business & Finance ➔ Renting & Real Estate
They can afford it. There is no other way around it. Your lender will look at your income to debt ratio. If you can afford it, they will lend you the money, if not they won't. The only suggestion I could give you would be to have talk with a lender and explain your situation. You may be able to have someone cosign a new mortgage with you. Then, once you sell your exisiting home, go and refinance or reapply for the same loan to remove the cosigner's name. Good luck.
2006-08-18 06:03:09 · answer #1 · answered by Richard B 3 · 0⤊ 0⤋
When people buy new construction from a builder, they only put in a deposit (usually equivalent of down payment or 10% of the cost) and pay for upgrades upfront. They don't actually make payments until the home is completed. So people live in their current homes, then sell them close to completion of their new home and only at that time begin making payments on the new home. Many people run into problems if they fail to sell their home before the new home is complete and cannot afford both mortgages.
There is such a thing as a bridge loan, which can help people out in such situations. Talk to a mortgage professional about these. But, these loans are very expensive, so I would try to avoid it at all costs.
My advice: sell you home earlier rather than later and rent on a short term basis. You will avoid a lot of worries.
Also, sometimes you can negotiate a lease back. This means you sell your home, but the buyer allows you to remain in your home and pay rent for some time after settlement. Most buyers a weary of such arrangements, but others will agree to them.
2006-08-18 07:10:56 · answer #2 · answered by mr_law_jersey 3 · 0⤊ 0⤋
You can find a new hse and make the purchase subject to closing at specifc date and the sale of your current hse.....this may frustrate you in your search but based in the current downturn in the real estate mkt, it might be appealing to a seller versus the hse sitting on the mkt for indefinite period while he finds the "perfect buyer"....
OR, you can carry the end loan of the new hse and make it interest only until you sell your hse..say for about 12-months.... with a curtailment on portion of the sale proceeds of the old hse to be applied towards the principal on the new loan........not only do you save by getting a better interest rate since the principal will be paid down siginificantly in 12-months but you also get some relief in making both pymts at the same time.........
2006-08-18 07:04:27 · answer #3 · answered by boston857 5 · 0⤊ 0⤋
If you haven't already, you should contact a realtor to help you. They can help you get your house sold fast for much less than making another mortgage payment ;)
Try going to http://www.idxbroker.com/news/256_IDX,_Inc._Introduces.php
just click on your state and you can check out local agents without having to contact them first.
Good luck!
2006-08-18 12:10:27 · answer #4 · answered by bigmary2 4 · 0⤊ 0⤋