I want to work from home and make real money?

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I am bilingual (spanish) home office setup, and got 2 kids and a husband. (Mortgage background) and can process loans here in Nevada. (Henderson, clark county area)

having already bought my first house two years ago (right before the market crashed or the bubble burst or whatever you want to say) i went through the whole lender experience and I know they are not completely truthful. I wasn’t the idiot that got into a subprime mortgage loan or anything, but I do hav an ARM… it is stable for seven years (five more) however… at 6.375. I would like to refinance of course first but what are the pros and cons of second home ownership? now that the prices have dropped dramatically where i live at least in the high desert of Nevada, i can have the home I wanted two years ago for less than what i bought my first for. Obvoiusly I would rent the one i have out… my question is obviously if there was a break in renters you would have to be able to afford to cover both mortgages… do the lenders look at this kinda stuff? Any info would be greatly appreciated!!

4 Comments
  1. Reply
    heyteach
    February 22, 2011 at 11:45 am

    You bet lenders look at the potential for there to be no renter–as should you.
    Can you really afford two houses?
    If you can, God bless and go for it as it’s a buyer’s market.
    However, do yourself a favor and make sure you CAN afford it–run the numbers, have a back up plan in place, and consider selling the house you have now. You may need to keep that option open.

    Get a fixed with no prepayment penalty on the house you really want.
    Get a buyer’s agent (they can help with lots of things and it’s free to you).
    Get a home inspection–especially if you’re attached to that house you could be blind to some things.

    You might see about a refi on what you have now–how high can that mortgage go? Do you want to be a long-term landlord? You get the idea.

    Good luck.

  2. Reply
    chuck h
    February 22, 2011 at 12:12 pm

    I suggest u wait. The housing slump and the subprime problems are far from over. But u can always go to an housing auction and bid on homes.

  3. Reply
    DannoREA
    February 22, 2011 at 12:32 pm

    First of all, I would recommend refinancing the 6.375% on the first home into a fixed rate product with the lowest monthly obligation possible. This way, not matter what rates do, you are covered.

    Second, as far as getting into a second home – you will want to prove you can afford it even if you never get a renter in that house.

    If there was a break in renters, they will certainly look at that long and hard to determine how much risk they want to take with their money. You will need to prove that you have the cash reserves to weather a long term break in renters. It would look better if you already had a renter ready to move into the proeprty when you were looking for the financing for the second home.

    Welcome to the world of real estate investment!

  4. Reply
    Denise J
    February 22, 2011 at 12:35 pm

    It’s not likely that you will be able to afford both the first mortgage and then to buy another home. You would have to make sure the first one was always rented and that just doesn’t happen. Many people who have always been renters are not entering the market to buy because the prices have dropped sharply. I wouldn’t do it. The lenders aren’t going to go for the idea at all.

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