Need to sell a Home & I need to buy a home..........

mrcj001 · Joined: 16 Jan 2008 Posts: 9 6.87 Dollars($)

I owe 13,000 on my current home. The home value is approx. 85-90K.....which is average in the neighborhood. The home has a lot of steps in it and I need a one level ranch.
I want to spend around 130-140K for another home.

Now, how does one sell and then buy a new home with the equity??

I need a payment around 500-550 per month, if it is possible.

my wife is a wage earner and I am self employed (20 years)....

Taxes show around 30K per year and have no other debts

Credit score is approx. 772

gmakerley · Posted: Sat Mar 21, 2009 6:29 am Post subject:

i'd assume you will be working with a real estate agent to sell your existing home. what you'll need to ensure is that you can sell prior to the closing of a new purchase. try to schedule for the same day - that way you'll have the proceeds of your sale to use for the purchase of the new property.

a good agent and a good lender will guide you through this process. do your homework when trying to find each of these professionals. perhaps a friend or coworker can help based on their experiences. you can also contact a wide variety of lenders on here, and we would all have contacts in the real estate profession that would be beneficial also.

devidas_padir · Joined: 01 Mar 2009 Posts: 49 6.41 Dollars($)

While you proceed with the treansactions, you need more focus on sale. That is more critical, retrieving your money is difficult because any change decision from buyer will affect your schedule. Buying have rather less obstacles and there is moe mphasis from the seller. Also, buying can be done at a lateral stage except in case of hesitation from the loan officer. You should have prior talks with the loan agency for that to have fair idea. But you will have ~80k in hand then, and a loan officer knows this. With your score being all right, you should be gettng the new loan. With this flow in mind, you may proceed with the your advisor.

gmakerley · Posted: Mon Mar 23, 2009 6:39 am Post subject:

mrcj001 · Joined: 16 Jan 2008 Posts: 9 6.87 Dollars($)

I found this on another website:

Another option is a no-ratio mortgage. A no-ratio mortgage is usually made based on the buyer's down payment, credit scores or assets. Income isn't used or reported, and therefore will not exclude a borrower from receiving this mortgage. Rates are often higher but you can refinance later.

Alternatively, you may be able to draw on a home equity line of credit on your old home. However, you might pay a penalty fee if you sell the house within a year.

Is there anything to watch out for if I use one of this routes??

Guest

mrcj, In my opinion, a No Ratio Mortgage is a useful option if you have more debts than a traditional mortgage will allow. In case of conventional loans, your debt to income ratio is one of the key factors in determining any loan approval. In case of a No Ratio Mortgage, no information regarding your income is included with the application so no ratio calculations are made. It is good option but in today’s market situation I doubt whether lenders would give you such an option.

gmakerley · Posted: Tue Mar 24, 2009 7:24 am Post subject:

well i certainly agree with that last sentence. not much else about the topic of no ratio loans, though.

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