Have paid for my house would like to buy another how easy is it?

Question

how do I buy another property and can i use my existing house to buy an another property.

Answer 1

I don't know about other countries, but if you are in the U.S. , if you have good credit, and you own your own home then, yea, you shouldn't have any trouble getting a loan for a new home. You can use your existing home as collateral for the new loan. As long as you have a good credit history just about any bank and especially your own bank would be willing to at least loan you what your current house is worth.
Of course, if you default on the loan then you will lose both houses so just make sure you are financially secure enough to do it.

Good Luck

Answer 2

Sure, buy why would you want to? The second property should be able to 'stand on its own' with the need for additional collateral (the first property). If it does, then you are WAY overpaying for the second property.

The biggest thing to consider here... why risk BOTH properties for just the one.

Now, if you need a down payment and all your equity is in the first property, the I suggest you take out a small Home Equity Loan on the first property that ONLY includes that property. Then create a 'second mortgage' for the second property that only includes the second property as collateral. This way if something happens that you can't make the notes, the only thing you stand you lose is the second property... not everything.

Here's a good tip, run your personal finances as if you are running a business. Ask yourself, does this make good 'business sense' and remove the emotional part of the question and you'll make better decisions!

Good luck!

Answer 3

Not sure what you want to do. Are you buying another house to live in or rent out? The same credit checks apply as if buying a first house. You can use the paid off houses equity to help with the down payment or normally sell the paid off house and buy another if you want to move.

Answer 4

Congrats! Lucky you.