Although every situation is unique, it is not uncommon for home buyers to qualify for a mortgage on a new home while still living in a primary residence.
Perhaps you are outgrowing your current house, or have been forced to relocate due to a job transfer?
Regardless of the motivation for keeping one property while purchasing another, let’s address this question with the mortgage approval in mind.
Welcome to the wonderful world of mortgage lending. If you are in a financial position where you qualify to afford both your current residence and the proposed payment on your new house, then the simple answer is Yes!
Qualifying based on your Debt-to-Income Ratio is one thing, but remember to budget for the additional expenses of maintaining multiple properties. Everything from mortgage payments, increased property taxes and unexpected repairs should be factored into your final decision.
Another possible scenario is to rent the other home to off set the mortgage payment. In this situation, you will have to qualify to afford BOTH mortgage payments. You will also need more money for a down payment.
However, you may not qualify based on both mortgage payments.
If you are in this situation, then you will have to sell your current home before buying a new one.
If you aren’t sure of the value of your home or how your local market is performing, give us a ring and we’ll happily refer you to a great real estate agent that is in tune with property values in your neighborhood.
As you can tell, purchasing one home while living in another can be a very complicated transaction. Please feel free to contact us anytime so we can review your specific situation and suggest the proper action plan.
Michael Carvajal- Equity Loans, LLC- Harvey Cedars, NJ 609-709-3517