Will we be able to get a fair mortgage? What are our Options?

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My wife and I own our house ,valued at about 70,000.with a small15,000 second mortgage.

We would like to move closer to work.The houses we have been looking at are about 125,000-150,000.

We both have stable employment and FAIR credit.
Our annual income is approx 75,000 gross.
We do not have a large down payment immediately available.
We also have no debt beyond the second mortgage.

We have been getting unsolicited offers on our house,but nothing concrete yet.

Some of the ideas we’ve seen have been; “Bridge loans”
or an 80/20 loan.(which we would then pay off the 20 when we sell our existing home)

Am I missing anything? Any other Ideas out there? Does it sound like we could pull it off? Or is it too much of a stretch in todays mortgage environment?

I appreciate everyones help so far.

5 Comments
  1. Reply
    REnate
    February 2, 2011 at 5:59 am

    Please please do not even think of buying another home until you sell you home; this is how so many people get screwed up royally.

    Sell you house first and that will give you the money to look for another house. You always have a term of months when you sell a house before you actually have to move out of your current home and this gives you time to look for another house. Don’t put the horse before the cart because you will end up in a pile of horse sh*t

  2. Reply
    Art
    February 2, 2011 at 6:56 am

    Your situation sounds do-able to me!

    I would suggest that you speak with a Mortgage Lender and have them go over your options!

    Good luck to you, and if you need a referral to a Buyer’s Agent in your area, let me know and I could put you in touch with one!

  3. Reply
    Reasonable Guy
    February 2, 2011 at 7:04 am

    Option 1:
    1) Start looking for houses but do not offer
    2) Sell your house. for 70 K+
    3) Move you stuff into storage and rent a furnished appt for one or two months.
    4) Buy a house using the 45K as a down payment. By using a large down payment you will reduce your mortgage by a fair amount.

    Option 2:
    1) Try to sell your house conditional on you selling your houlse. This will usually get you less money but you won’t need bridge funding. The downside is that if you don’t sell you house in time, you will lose your down payment.

    Bridge loans can get out of hand if you cannot sell your house in time. Best used either when you have already arranged both the purchase and the sell so it is for a set time limit not open-ended.

  4. Reply
    Jordan K
    February 2, 2011 at 7:21 am

    You definitely need to sell your existing home first. I know people who have been trapped by buying another home and not being able to sell their existing house, and thus having to find the money to pay for two home mortgage payments. You can do a long closure on your home to ensure that you have ample time to find a new home to move into.

    Jord – UK Home Mortgages
    http://www.ihomemortgage.co.uk

  5. Reply
    Marty S
    February 2, 2011 at 7:27 am

    I can help, just shoot me an email to msmith@premierloangroup.com, and we’ll discuss your options!

    Marty

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