Refinance my current home to buy another one...
Hey guys I have a question regarding this process of refinance, rent to buy another home.
So I have my first home which I currently live in and I am looking to refinance it and use that money for down payment/rehab/closing costs or whatever it may be for the next home and rent the current one. I guess my question is when applying for a loan on the second home how do they determine if you qualify? Do they take into account the rental income potential or would I need to find a tenant and move into a temporary place and then apply for the loan. Because otherwise my rent to income ratio would be through the roof having two conventional mortgages and I simply would not qualify.
This question has been probably answered a million times on this forum but I couldn't find it. Hopefully ya'll can help.
Thank you,