Qualifying for 2 mortgages

2 Replies

Hello,

My husband and I currently own a town home. With a growing family we would like to expand to a single family home while keeping the townhouse as a rental property. Without the sale of the townhouse our down payment would be limited. We ok credit score, more than adequate income, and minimal debt. We are currently working with a mortgage broker at quicken loans who gave us a pre approval and said this p,an would be possible. I don't trust him and feel like he's just telling us what we want to hear. Any ideas on how else I could make this plan work?

Originally posted by @Nathalie Hawse :

Hello,

My husband and I currently own a town home. With a growing family we would like to expand to a single family home while keeping the townhouse as a rental property. Without the sale of the townhouse our down payment would be limited. We ok credit score, more than adequate income, and minimal debt. We are currently working with a mortgage broker at quicken loans who gave us a pre approval and said this p,an would be possible. I don't trust him and feel like he's just telling us what we want to hear. Any ideas on how else I could make this plan work?

 Talk to a local lender that'll go over all the details with you. Yes, it's possible. Yes, it's also quite likely the internet lender is just throwing spaghetti at the wall to see what sticks. The internet lender loses nothing by saying "yes" when the correct answer is "no," the local lender is putting their rep on the line for you if they say "yes." 

Real estate agents are well aware of this fact and treat one preapproval letter as toilet paper, and the other as a check waiting to be cashed, accordingly (and obviously advise their homeseller clients as such). Assuming you are of course qualified, the assembly line is far less likely to be able to deliver than the local shop.

@Nathalie Hawse You can ask your lender how he has done his calculations to qualify you. If there is no trust between you and lender there is no way you can work for longer time with him. Communication should be open in both ways.  

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