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Low Cash in savings Large equity in house sale to fund mortgage

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Low Cash in savings Large equity in house sale to fund mortgage

Hello,

I am going Tuesday to get my mortgage pre approval

I am well with in DTI limits, and my credit is a 674.


So Im not worried about that stuff, but have a couple questions.

I gave up on buying a house and paid off a ton of debt. I recently started saving again and was planning on buying in the spring/summer. But the perfect house came up and interest rates are flying upwards.

Heres my question: The Purchase price is $280,000 I only have $3500 in savings right now. We are selling our current house (Paid off) with approximatley $115,000 in value and are paying 20% down on the new house ($56,000) This would leave us with about $40,000 in savings.

Will a bank frown on or even deny a mortgage because of my low savings amount now?

Also I bought an RV in October it is a low payment but a 10 year note. and Doesnt affect my DTI, however will a new loan so close to applying for this mortgage screw me?

Thanks,

BDR

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Re: Low Cash in savings Large equity in house sale to fund mortgage


@BDR1 wrote:

Hello,

I am going Tuesday to get my mortgage pre approval

I am well with in DTI limits, and my credit is a 674.


So Im not worried about that stuff, but have a couple questions.

I gave up on buying a house and paid off a ton of debt. I recently started saving again and was planning on buying in the spring/summer. But the perfect house came up and interest rates are flying upwards.

Heres my question: The Purchase price is $280,000 I only have $3500 in savings right now. We are selling our current house (Paid off) with approximatley $115,000 in value and are paying 20% down on the new house ($56,000) This would leave us with about $40,000 in savings.

Will a bank frown on or even deny a mortgage because of my low savings amount now?

Also I bought an RV in October it is a low payment but a 10 year note. and Doesnt affect my DTI, however will a new loan so close to applying for this mortgage screw me?

Thanks,

BDR


^^^No, you have plenty of funds to purchase a home and you can show those funds are coming from the sale of your home. Is your home under contract or have you just put it on the market. They may make your pre-approval subject to your current home selling (or not). This is completely normal and dependent upon your income and debt.

 

Your new loan does count against your DTI. However, it is no big deal if you fall within the guidelines. No, the application for this new RV loan that you received two months ago won't 'screw' you. Sounds like you are in good shape with the sale of your home Smiley Happy 

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