Will I get a prime mortgage?

Guest 0.10 Dollars($)

Here's my situation:

I own a home and have about $500K in equity. I'm going to sell my home in the next 7 months, pocket the return, and then move out to some other place. I plan on renting there for about 8 months to get a feel of neighborhood and then buy a property.

I plan on being employed by that time. But, I hadn't found a job yet. Will it effect that I haven't been there at least for 2 years? Or, will they overlook that issue? If I put down $50K on a $225K house, along with having over $100K in reserves, will I get a prime mortgage?

Guest 0.10 Dollars($)

Hi Raphael,

I think you would be better off renting for a few months and then closing on a loan once you had a job that could be verified.

2 years isn't going to matter as long as you are in the same line of work as you were at your last job.

Angi

Samantha · Posted: Thu Dec 08, 2005 3:49 pm Post subject:

Hi Raphael,

I would like to know a few things before making any suggestions-

May I know your credit score and whether you are a self employed person or w2 wage earner? Do you think that the value for a new home in the new area will increase?

Also kindly let me know how much you want to put down again, how much money you are having in 401(k), profit sharing, or any other retirement plan? Are you going to change your line of work?

May I get some ideas in these areas to be more specific in my reply.

God bless you.

For MortgageFit,
Samantha

Guest 0.10 Dollars($)

My FICO is probably 685-700 & a w2 wage earner.
My new home will probably be about $250K and I will be in the same line of work for about 13 years.

Samantha · Posted: Thu Dec 08, 2005 4:49 pm Post subject:

Hi Raphael,

You do have a great score. You may have good options to select loan for yourself. The only problem that may count is your present unemployment status.

If you don't have employment you can opt for a no documentation loan where you need not disclose assets, income, or employment.

In such loans your income, assets, employment is not required to be mentioned on the application. So, there is no information to be disclosed. But the rate for this loan will be quite high.

Since you have a good score I will suggest you to find an employment. It will help you for a full documentation loan which will enable you to obtain a conforming loan with prime rates available.

God bless you.

For MortgageFit,
Samantha

info

Do you bank with wells fargo?

What are you going to do with all the cash from the sale of your house?

I have a friend that got a super low rate with wells fargo bank. He was able to get a prefered rate because he had a lot of money in a savings account with Wells. He told me that the formula is, if you have half the amount of the loan in the bank, you will get a prefered rate. After the loan funded, he moved the money into his stock profolio. There was no stipulation in the loan that forced him to keep the money there.The best thing to do is, deposit $115,000 in the bank and get a loan.

cheers

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Cliff · Posted: Mon Dec 12, 2005 9:47 am Post subject:

Hi Raphael,

You do have a great score. Since you will be in the same line of work, you can do a stated income loan and since you are relocating it should not be a problem. You should be able to get a good interest rate. Just make sure that the proceeds do not exceed $500k (for married) or $250k (for single) otherwise you will pay capital gains taxes.
Prime mortgage is not based on your reserves alone, it would be based on your credit score, making sure your DTI (debt to income ratio) is within lender's guidelines and your reserves. You are doing the right thing with feeling out the neighborhood before purchasing. When getting a lender make sure you shop around and know that your lender/broker will look out for your best interest and not their own.

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