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"Jeff Strickland" <crwlr@yahoo.com> wrote in message
news:iJCdnS68XqO1xa3eRVn-rw@ez2.net...
> 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.
<Owner/operator of home based pc repair business(plus a little pizza
delivery for health insurance and stable cash)
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.
<<This good be a bad thing......I've a fiancé, and she is paying half of
the bills, but because her credit score is lower, the agent said the rate
would be higher with her on the loan.....I do not want to have to show 6
months of income at all!!!
>
> 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.
<< Hopefully, will never be a problem...I've a friend who has 4 houses,
pretty much doing the same thing (even with stated income, and his computer
job)....If I couldn't get it rented, I'd just work overtime if I had to,
or rent it at a reduced rate.....I have worked hard to get this credit score
up, and never want it to go low again!!
>
> 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.
<<A call from my fiancé this morning solved that. Amazes me sometimes, I
talked to this guy twice, and he wouldn't do it.... I guess I left him
enough room to "wiggle" out of it, whereas she did not...
>
> 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.
<<It probably does, but we are looking at keeping the house for a long time,
and the rate we locked in is pretty low (5.625)....The plan is to just let
it sit there and get paid off....or move back someday....although the
interest rates on the Heloc may be higher, we can throw money at that pretty
quickly hopefully....
>
> Then take the cash you pull out of the current home and use it to make the
> Down on the next home.
>
That's the plan...
Thanks Jeff, you've given me advice in the past, and always love hearing
from you....
>
>
>
>
> "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....
>>
>
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Re: preapproval problem
