Selling condo, buying house (hopefully)

[Anonymous]

I have a couple questions regarding the mortgage process and appreciate any feedback regarding my particular case.

First question:

I'm currently in the process of selling a condo in southern California and escrow is supposed to close within two weeks. I plan on taking the proceeds from the sale and using it for a down payment on a house in northern California. Would it be appropriate for me to apply for a new mortgage/pre-approval before escrow closes on my condo so I can start looking for a house?

Second question:

I'm hoping to purchase a house in the $220k - 240k range and wanted to see if there are any obvious reasons that might prevent this. My income is around $55k, credit scores: Transunion 741 - Equifax 783, and debts: car note - $20k ($500/month) and 401k loan - $3500 (paycheck deduction - around $100/month). I plan on putting down 20% for the house with at least a two month reserve for emergencies (around $5k). My wife will pay for all other living expenses. The thing I'm worried about most is my income which might not be high enough to qualify which is why I'm asking here.

Thank you

[ShanetheMortgageMan]

Yes it'd definitely be appropriate, for you to apply for a pre-approval before escrow closes on your condo - are you able to remain in your condo while you are working on closing escrow on your new home?

$55k/year of qualifying income is fine for your situation and what you are looking to do.  However unless your definition of SoCal & NorCal is Fresno & Modesto, lenders are going to question how you will be able to maintain your employment and move long distance.  Do you have a job transfer lined up?

[Anonymous]

Shane - thank you for the information.

I'm already living/working in Norcal (Stockton area) and I've been with my employer for around 13 years (basically a transfer). 

Is there any kind of methodology that should be used for finding a mortgage broker and realtor?  I know the best way is to get a referral/recommendation from a friend or co-worker, but being somewhat new to the area makes this difficult.  There are so many choices out there!

[ShanetheMortgageMan]

It sounds like your employment and moving logisics wouldn't be an issue then.

While real estate agents need to be local, loan officers do not, so any recommendation or referrals you get would still be worth pursuing.  Co-workers who have purchased homes can help with the real estate agent recommendation though, perhaps a Michael Scott-like supervisor will remember who recently purchased a home.  When dealing with housing professionals your BS sensor needs to be on high alert so you can weed out the ones who have their interests in the forefront of their minds vs. your interests.  Probably like you, I like to do a lot of my research by reading, so when I seek out real estate agents in areas I am not familiar with I typicaly utilize the directory at ActiveRain.com, they rank the housing professionals (which are primarily real estate agents) by how much content they put out/blog/etc., it has their bios, and anything else they want to put out, so it is a good way for you to get a feel for those agents who utilize the service.  http://activerain.com/states/CA/cities/Stockton is the direct link for the Stockton directory - may want to expand the search to just San Joaquin County however.