topic First Home - Second Home - First Home in Mortgage Loans

First Home - Second Home - First Home

Anonymous — Fri, 28 Dec 2018 23:15:45 GMT

I am looking for direction and any suggestions to minimize the bleeding from my wallet that inevitibly comes from getting a mortgage.

Here is the scenario:

We own a house on one coast and are going to move to the other.

Wanting to buy a new house and then make the move before selling the existing house so that there is no time living in a temporary situation, and so that I can do about three weeks worth of work to the existing house that will greatly improve its resale (refinish hardwoods, re-tile 2 bathroom floors as they are currently vinyl, replace the formica countertops with the exact same dimension granite, paint out the garage, etc).

How can I go about this the least expensive way in terms of my mortgage costs?

Are there any credit unions around offering no loan origination mortgages?

Who will provide me with a primary home mortgage in this scenario?

What are some of the things to avoid?

Thanks in advance for the insights!

Re: First Home - Second Home - First Home

NC_Mtg_Loaner — Sat, 29 Dec 2018 03:48:09 GMT

What type of income do you have to support paying back a mortgage loan for the current and the new home.

Relocation is a complicated yet simple process depending upon your income situation and it's going to be beneficial to know in order to help you.

Of course we'll also need to know monthly debts and liabilities too, but as long as your income supports paying both mortgages at the same time you could feasibly do what you are talking about. I'll add though that you certainly want to be careful spending money to 'upgrade' the house you are selling, so be sure to speak with a couple experienced agents/realtors-- but depending upon your circumstances anything is possible.

Re: First Home - Second Home - First Home

trusty — Sat, 29 Dec 2018 07:47:30 GMT

While it seems more convenient to buy before selling, the vast majority of borrowers cannot afford to carry two mortgages. Even if you can afford it, it adds undue risk, as opposed to just making an offer contingent upon your home actually selling.

You can sell your home today and still remain... by simply including a temporary leaseback clause, stating that you will deliver the home on a future date certain.

As far as fixing up the house is concerned; most professionals will tell you that it's vastly overrated. The best you can do is ensure that everything is in good working order, and that the home is clean. Staging the home with decor and new appliances can also help, if you can afford it. A fresh coat of paint can also go a long way; but again, unless it's a neutral color, the buyer may just come in and cover it up. But, we're way past improving the home. Sure, fixing flooring and countertops helps, but it shouldn't be done solely to delay the process.

Oftentimes, a buyer will come in and just rip out any last minute improvements, anyhow. - May as well let a professional show your home a few times, and just wait and see if a buyer stipulates to any major improvements; which, by the way, would most likely just lead to an incrimental price adjustment - that would not create a profit.

In other words, why do something that will most likely just amount to a wash, and possibly a further loss of money - and time.

The best thing to do is to get all of the major systems checked out, to make sure that the home can pass inspection; give the home a good deep clean... and then consult a professional to bring in some offers. Then you'll know if you need to fix anything further.

Hope it all works out.

Re: First Home - Second Home - First Home

Anonymous — Sun, 30 Dec 2018 18:46:46 GMT

Currently our DTI is .22

Adding another $4,000.00 per month mortgage will take us to .39

Agreed about the upgrades.

Re: First Home - Second Home - First Home

GApeachy — Sun, 30 Dec 2018 18:57:37 GMT

Could you offer to sell house with an upgrade incentive in fixed amt. of $ to future purchaser in order to avoid the long distance/time consuming hassle of dealing with contractor/subs schedules?....and it would give future purchaser an option to remodel to their taste.

Re: First Home - Second Home - First Home

Anonymous — Sun, 30 Dec 2018 19:14:45 GMT

Our current house was built in 1983 and for the most part no major updates have been done (original windows, doors, etc) The prior owners were the original owners and maintained it very well. The items that I want to address are things that are fairly inexpensive and I can do by myself with the exception of the refinishing of the hardwood floors ($1,327.00 estimated). The items are also ones that our listing agent recommended to help with raising the appraisal and quickening the sale.

These breakout like this:

HW Refinishing $ 1,327.00

Tile Bathrooms $ 730.00

Kitchen Counters $ 1,850.00

Paint $ 700.00

Total $ 4,607.00

For that much money the house goes from "needing this taken care of" (HW floor has a couple of fairly large scratches, one pretty good gouge from something being dropped. Formica counter tops have 2 wear spots through the top finish to the white underneath.) to "this house doesnt need anything, but we could do this or that later..."

I feel good with the advise that our agent has given us as to what to repair and replace (I had wanted to do the windows & doors and they said dont, that it wouldn't raise the value).

For me... it is the mortgage and cost of the mortgage end of things....

Re: First Home - Second Home - First Home

VALoanMaster — Thu, 03 Jan 2019 21:07:43 GMT

@Anonymous wrote:
Our current house was built in 1983 and for the most part no major updates have been done (original windows, doors, etc) The prior owners were the original owners and maintained it very well. The items that I want to address are things that are fairly inexpensive and I can do by myself with the exception of the refinishing of the hardwood floors ($1,327.00 estimated). The items are also ones that our listing agent recommended to help with raising the appraisal and quickening the sale.

These breakout like this:
HW Refinishing      $ 1,327.00
Tile Bathrooms      $    730.00
Kitchen Counters $ 1,850.00
Paint                        $   700.00
Total                        $ 4,607.00

For that much money the house goes from "needing this taken care of" (HW floor has a couple of fairly large scratches, one pretty good gouge from something being dropped. Formica counter tops have 2 wear spots through the top finish to the white underneath.) to "this house doesnt need anything, but we could do this or that later..."

I feel good with the advise that our agent has given us as to what to repair and replace (I had wanted to do the windows & doors and they said dont, that it wouldn't raise the value).

For me... it is the mortgage and cost of the mortgage end of things....

Hi MTG-Hunter,

Where are you moving to?

In most states, you can get the seller to cover your closing costs which makes your mortgage costs irrelevant.

The bigger "issue" when relocating across the country & getting a mortgage is employment related.

Are you transferring with your current employer or with a new employer?

If it's with a new employer, you'll likely need to have 30 days worth of pay stubs prior to closing on your new home unless you have a non-revocable offer letter/contract.