AboutEric Forster Expertise Did your last mortgage broker or lender trick you into a messy situation which could cost you your home? I've been close to 30 years in the mortgage industry, and I've seen it all. Believe me, it is not pretty.
As the owner of a mortgage company I am called frequently to testify as an expert witness in mortgage fraud cases and other cases where lenders did not fully disclose the terms of the loans they were offering to the borrowers. I have seen fraud being committed by borrowers - and by lenders. It's a tough world out there.
Experience More than 25 years in loan production and underwriting in Southern California.
Organizations Mortgage Bankers of America (Southern California Chapter)
Publications Former columnist for AOL Financial Center and the author of a mortgage primer.
Question OK I hope you can help. Here is my situation, I currently own a home,but want to sell it when I move to another city. I would like to buy a new home before I move. If I were to get a joint mortgage with my partner on a new home, can I do that before I put my old house up for sale? This way I have a place to live before I have to move, and can sell it after? Will lenders even give us a loan knowing I already own a home? And would we need a downpayment?
Answer Michelle -
It can be done, but it's not easy. For most people, making payments on 2 homes is not financially feasible, and because of that, lenders look very carefully at the proposed transaction.
To make sure that the old home does not become a burden on you, the lender will demand to see how you intend to dispose of it. Obviously, you can (depending on your finances) either sell or lease out the old home, and either method is acceptable to the new lender, as long as you can show the lender that the disposition (closing) of the old home will be done no later than 30 days after closing the new house.
As to the type of loan that you can get on the new home, that depends on your credit & income. For some people it would be easier to obtain no-down payment loans than for other applicants.
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This topic answers questions related to purchasing a home, owning a home, home ownership, mortgage education, mortgage applications, and mortgage needs whether buying a first home or refinancing a current loan. Issues related to home ownership, home equity, mortgage education, refinacing options, home improvment finacing, first time home loans, home equity loans, vactation home loans, and mortgages for investment homes are dealt with here also. Though not the primary focus of this topic, Home Equity Lines of Credits (HELOCS), reverse mortgages, and calculating home equity may also be asked. If you do not see your home mortgae, home finacing, or home equity question answered in this area then please ask a question here
