Mortgage question

[crazy caballo]

I have a dilemma.

At the current moment, I own a home (mortgage). Although we love our house and we get lots of compliments, is not what my wife envision as her for ever home. The last couple of months we have been house house hunting for my inlaws and relatives that are moving closer to us. In the process we have stumble on a home that we love.

Here's my dilemma, I'm retired. Because of mg income I'm sure I wont qualify for another loan, hell I'm not sure if they would have approve me for my current loan.

Anyways, my question is ... my current house is in a better neighborhood and it's going to appraise and sell for more than the house love. We are current and never been late with payments. Would a loan agency approve me with a contingency of selling my home and applying the equity to the new home? Not sure if I'm myself correctly.

 

[jjs07]

If you have the funds, I don't think you'll have an issue getting a loan. Strong down payment (which it seems you'll be able to get based off of the sale of your current house,) good payment history on your old home, and the proper funds in your bank acct, I think you should be OK. Get a pre-approval letter ready to go. Just make sure ur ducks r in a row.

 

[puglife]

Average length of a mortgage is only about 7 years. Just out of curiosity, how old are you?

 

[jjs]

Retired? Do you have a source of income?

 

[GTA 809]

I won't try to change your mind because happy wife, happy life, but ide rather have a near perfect home in a great neighborhood than my dream home in a worse neighborhood.

Are any of your in-laws or relatives interested in your current home?

 

[jjs07]

Yea...what's the appeal of the other neighborhood? Personally, I wouldn't compromise living in a worse neighborhood just to get a better home.

 

[beacon ave south]

Depending on how much equity you have in your current home, you can use whatevers available towards the potential new place.

 

[johnnyredstorm]

Better neighborhood is the way to go unless you’re new spot is on the verge of being gentrified and you’re getting a good deal on something that could rise in value quicker/more

 

[nflowshoe]

My friend just went through the same scenario you just mentioned. He got approved for a new loan while his old house was on the market. What the Credit Union made him do before clearing the new mortgage was sell his Chevy Silverado and clear all of his credit card debt. Selling the Silverado cleared up about $500 a month and paying off his credit card debt freed up another 300-400. Once he closed on the new home he remaxed his cards and bought a F-150 raptor

 

[dipsetgeneral]

Good question, OP. I'm here for the feedback.

 

[crazy caballo]

Average length of a mortgage is only about 7 years. Just out of curiosity, how old are you?

Do you mean the avg time a person holds on to a loan? Traditionally, the avg term of the loan in the US is 30 years. Some take the 15 year route and others just use cash.

Retired? Do you have a source of income?

yes, retirement monthly check. However, it's not going to be sufficient for the amount needed. Hence the reason I'm asking. Although I dont have sufficient earned income coming in, the amount of the loan would be less than my original loan. Could I get approved??

 

[kingkoopa]

Do you mean the avg time a person holds on to a loan? Traditionally, the avg term of the loan in the US is 30 years. Some take the 15 year route and others just use cash.

I don't think he means the term of said loan.

Just that people sale at 7 years.

 

[crazy caballo]

I won't try to change your mind because happy wife, happy life, but ide rather have a near perfect home in a great neighborhood than my dream home in a worse neighborhood.

Are any of your in-laws or relatives interested in your current home?

my home is bigger than what they would required and the upkeep to much for them. The house we are looking is actually bigger.

Yea...what's the appeal of the other neighborhood? Personally, I wouldn't compromise living in a worse neighborhood just to get a better home.

it's a victorian, completely made over. Big everything with a beautiful inlaw suite or college student apartment in the attic. The neighborhood is not bad, but street over borders to a less desirable neighborhood. I have weight the pros and cons ... we wouldnt have to pass thru the neighborhood and kids would be going to private school.

I tried to convince her to buy another home in a prime location which the house was dropped 100k but it needs work and she doesn't want to deal with it.

Better neighborhood is the way to go unless you’re new spot is on the verge of being gentrified and you’re getting a good deal on something that could rise in value quicker/more

I highly doubt it. I also tried to convince her on a fixer upper to her taste on a much prime neighborhood which with 100k the house would demand twice 50% more what we paid, but she's not hearing it.

Don't get me wrong, we love our home and our neighbors, she envision our family in the new home more.