Relocation Buying/Selling Questions (Wells Fargo)

[Anonymous]

Hello All!

I’m totally stressing out about my upcoming move out of state with my family. I’ll provide some data points before I ask my questions. Here goes:

I’m a 20 year retired Army vet. 100% disabled with 4 kids so I pull in about 3800 dollars a month which is about 48,000 a year from vet benefits alone. I have no other income at the moment. I have a middle mortgage score of about 700. I have an old collections account of 2700 that is due to fall off in June 2020. And a missed payment 5 years ago that had been paid. Other than that all my balances are paid in full and DTI is 0%. We are selling our current house and should be sold in the next few months. We plan on selling in Texas and moving to Georgia (concurrently, hopefully). My wife is a retired vet as well 100% same income but her credit is far too bad to be included in the loan. More harm than good imo. I’m a current Wells Fargo customer and they service my current loan and I plan on using them for the next home loan as well.

OKAY, Whew.. On to the questions.

If I’m in Texas, can a mortgage consultant in Texas get the ball rolling and get me preapproved in Georgia? And can that consultant help me start the process to smoothly transition?

Will my current mortgage monthly payment be factored into my new DTI for approval purposes? Will a offer my current home suffice to exclude it from DTI?

Is it heard of to take a pre approval originated in TX and use it in GA? Is it location specific?

Finally, given the data points on my income how much house do you all believe I’d be about to be approved for with that income and no monthly card bills? I’m just looking for an educated guess I suppose

Thanks for your help!

[NC_Mtg_Loaner]

First things first, thanks to both you and your spouse for your service to our country, it is greatly appreciated.

Provide all this info to your local Wells Fargo MLO so that they can get you pre-approved for your relocation to GA and you shouldn't have any trouble at all.    Your offer to purchase might appear weak if you make it contingent upon the sale of the TX home, but as long as your Due Diligence date on the Texas sale has passed and  your buyer is moving forward to closing, I expect you'd be fine in GA.  

Assuming you are using your VA entitlement that gets renewed upon payoff of current home, you'll easily be approved for close to $1800-2000 monthly payment.   (also assumes we gross up your income by 10% since it's non-taxed, right?)  Not sure how that impacts your GA transaction if you plan on having any $ for down payment.

Hope this helps!

[Anonymous]

Thanks for the reply! That is great info. I was very unsure how to approach this situation. One more question. Should I try to time the sale and purchase of the house around the same time? Or should I completely sell my current house and then apply at Wells Fargo? Will this effect my approval as my mortgage being paid off will probably drop my score?