Buying one house while trying to sell another – does it hurt your credit?
Author: admin // Category: fl mortgageI have a mortgage on the house I’m living in, but my work is transferring me to another state, which has a higher cost of living. The house I’m in will go on the market, but I will need a place in the new state pretty quickly. Will the old house mortgage hurt my credit for the new house mortgage?
My husband and I run a mortgage branch in Temecula, CA. The answer to your question is that you would need to get pre-qualified again to buy the new home. If you are earning enough money you could, in order to prequalify, retain your existing home whilst buying the new one. If not, you would need to make the purchase of the new home dependant upon selling the existing one. In terms of hurting your credit, well a new mortgage account usually knocks it slightly, but generally over a few months having 2 mortgages is good for your credit rather than detrimental. And having an existing mortgage account which you have been paying every month is a good thing for the new lender, not a bad thing. It is always good to have open credit which you are using and paying as agreed.
If you need help in either CA, WA, OR, FL or AZ please call us and we will help. 951 302 6586 or toll free 866 606 8707.
March 11th, 2013 at 12:36 pm
My husband and I run a mortgage branch in Temecula, CA. The answer to your question is that you would need to get pre-qualified again to buy the new home. If you are earning enough money you could, in order to prequalify, retain your existing home whilst buying the new one. If not, you would need to make the purchase of the new home dependant upon selling the existing one. In terms of hurting your credit, well a new mortgage account usually knocks it slightly, but generally over a few months having 2 mortgages is good for your credit rather than detrimental. And having an existing mortgage account which you have been paying every month is a good thing for the new lender, not a bad thing. It is always good to have open credit which you are using and paying as agreed.
If you need help in either CA, WA, OR, FL or AZ please call us and we will help. 951 302 6586 or toll free 866 606 8707.
References :
March 11th, 2013 at 12:51 pm
Does your employer have a relocation specialist helping you? Your situation isn’t that uncommon and I’m sure the specialist can put you in touch with resources in your new area that realize you are selling your old house and buying a new one.
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March 11th, 2013 at 1:31 pm
Absolutely not. You can buy this new house in the state you are moving as an Owner Occupied Primary Residence and still it wont hurt you in financing or qualifying since you are purchasing this house in a totally different place than your current home, and because of your relocation.
When you do the loan application for the new purchase it will reflect that your present home will be sold off and probably you may use the proceeds of the sale towards the new purchase.
My suggestion will be to rent a place for the time being and let the sale of your current home close even though you can buy the new home simultaneously. This way you will not have two mortgage payments.
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I am a Realtor and Loan Consultant.
http://arvindprasad.point2agent.com