Can I Get A Mortgage?

[bewildered2]

I am trying to move closer to my work and my family. I have a 50 minute commute each way on a good day. I'd like to cut it in half or less. My current home is seriously underwater. My credit score is very good, my debt ratio even with this house would allow me to buy a house in the price range I'm interested. It would be significantly lower cost than my current home (though likely more than what it is currently worth). I'd like to know if I will be able to obtain a mortgage before selling this house. If at all possible I want to find the home I want first and then begin the process of selling my home. I don't really want to have to move twice which seems almost unavoidable in the current market if I can't purchase first, then sell.

Anyone faced a similar situation?

[jq26]

You cannot get a mortgage. When I moved in 2009, I wanted to keep my old home as a rental and buy a new one for use as a principal residence. I was repeatedly told by banks and a mortgage banker that "buy and bail rules" are in effect that prevent you from buying a home without significant equity in the original home. Something like 25-30% equity in the original property is the minium requirement.

At the time I had 20% equity in the original property and it still wasn't enough....they're trying to prevent people from buying property #2 and then bailing on property #1, something it seems you are hinting at.

Maybe the rules have been relaxed a bit. But if you're underwater, no lender will finance a new purchase.

[collen]

You can maybe avail for mortgage before selling your home. Eventually it depends on the area your in also if they let it but for sure check some details on it.

[Fedd667]

I totally agree with Jq26 that you cannot get mortgage loan for it..!!

[victoria stiles]

Trust mortgage brokers with finding your loan and they will trust you and your well earned income. Anyways thanks for the advices everyone.