I hope all of you knowledgeable people can hel me out. I own a condo which given the current climate I cannot sell for what I owe on the mortgage...if I could sell it at all. I changed jobs in January 2007 and can't stand the commute anymore in addition to a few other issues with my current place. Therefore, I would like to lease it out and buy a new home, especially given the current market. I could get a really good deal on what is close to the house of my dreams. It is new construction so will be around a 6 month wait from the time I sign until I close. I have a decent enough income I could afford to make both the lease payments and a new mortgage if need be for a few months.
I have a decent credit rating at least as far as Equifax is concerned- 727. What do I need to show regarding my current mortgage to be able to qualify for a new mortgage? Signed lease? For what length of time?
On an entirely different tangent, I currently have a car payment of nearly $400 per month. My car will be paid off next March. I would like to trade that car in to buy a new car which will likely substantially bring down my car payment. But...I will obviously now have a car payment well extending past March, 2009 and I would like to know what kind of hit my credit score will take by opening a new credit account so close to trying to qualify for a mortgage.
Is it worth it to lower my car payments (and my monthly debt) but take a hit on my credit or should I stick it out with my more expensive car. My car is getting more expensive because I think it knows I want to get rid of it and it's slowly starting to fall apart! 
Thanks for all your help!
Jennifer
