|
You didn't say what you do for income. If you are the custodian at WalMart,
then you're going to have trouble stating enough income for two mortgages,
but if you are a Web designer then it is reasonable that you can easily
support two mortgages. The trouble is, if you state enough income, then the
bank will want to verify asssets, and they will want to see something on the
order of 6 months of income in a saving/checking account. The actual amount
of money they want to see varies with each lender.
You current refi is an owner occupied, and you will be moving after you
close the loan. If you don't default on the new loan, they won't care that
your plans changed, but if you do default, then they might come after you
for fraud.
I do not know why you cannot get a Pre-Approval Letter from your current loan
officer. He should be able to get you approved for the refi and the
purchase, but maybe he wants the refi to go through first, then start on the
purchase.
I would take the HELOC, or simply get a Cash Out loan on the existing house for
a short period of time, say 3 years. This will give you a low fixed-rate
loan, maybe even Interest Only. In 3 years you will be faced with another
refi, a sale, or the conversion of the loan to an Adjustable. Most
investors -- you will be an investor in the existing residence when you move
out and convert it to rental -- will take the 3/1 ARM and simply deduct the
refi expenses against the income, and adjust the rent every three years as
the mortgage costs change. I think the 3/1 ARM makes more sense than the
HELOC at this point.
Then take the cash you pull out of the current home and use it to make the
Down on the next home.
"paranoid" <none@noneya.com> wrote in message
news:89OXe.7120$nV1.6018@trnddc06...
> This message mat be crossposted in other groups, if so, sorry, I am just
> trying to get a quick response....Thanks in advance
>
> So here is the deal. We own a house with about 40k to 80k in equity
> (waiting on appraisal now, should be done tomorrow)....We are in the
> middle of refinancing that house, to get a rate of about 1.75 percent
> lower.
>
> We have decided that we need to move to the other side of town quick
> (family obligations have us driving approximately 100-200 miles a
> day)....so here is our plan.
>
> Get a HELOC on the house, after the refinance, use that for down
> payment on a new house, obtain another loan...
>
> So in short...refinance current house, get a heloc, find property,
> obtain financing, move, rent out original house....
>
> Problem:
>
> We have found a property we like, but we can't obtain a pre approval
> letter from the loan officer. He says he doesn't want to sign his name on
> anything that he cant guarantee. My real estate agent says without this
> letter, our offer wont be accepted....
>
> My middle score is 704, and we are doing a stated income loan (I'm
> self-employed), and will be doing another stated income on the second
> house....
>
> What do we do? We thought about backing out of the current refinance,
> and then just getting a Heloc, and obtaining the second loan. Problem,. is
> we do not reduce our interest rate on said property, and it will cost us
> about $100 a month more, and we are very limited on our budget....Also,
> since we will be moving, refinancing the original house again at a later
> date will mean, either we lie about it being a primary residence, or its
> not worth doing, since it will be considered investment property..
>
> What would you do? We really need to move, Ive considered renting also.
> Main goal, is we have to move, before we drive ourselves crazy with all
> this driving.
>
>
> Again, Thanks again....
>
|
|
Re: preapproval problem
