I am Really moving this time.

[alleycat]

Thanks all for the well wishes. Selling my first house after 27 years here is going to take a while. Does anyone know anything about bridge loans?

I also need to know what the calculations are for debt to salary ratios for calculating mortgage qualification. There is so much about this process I don't know.

Should we rent for a couple of months while we try to sell our hose in NJ? The relocation package says we have to close on a new house in NY before 9/1/12.

If we could get a second home equity loan on our current house and use it on the new house as a down payment is that a good idea?

I have never taken a business, economics or accounting course so all of this is over my head. I would love to hear ideas and suggestions.


I will use multiples of the real numbers to see if this works.

New salary ...........................~$270,000/yr

current house worth............... ~ $500,000 (In current narket)

Current Mortgage................... ~$150,000 @~6.0%

Current Home Equity loan..........~113,000 @~3.0%

current short term debt............~85,000 @~ 6-15%
(credit cards, cars, etc)


So my questions are, how much of a 3rd mortgage or 2nd home equity line could this person get on the first home? and how much would they be approved for a new mortgage on a 2nd home?

There is a small amount of other income from side jobs and other household members which has a potential of ~ $20,000-$90,000 per year depending on need.

So I would love if one of you business or accounting types could help me with this.

Linda please send your husband ahead and rent an apartment. Please get rid of your home and some of your debt before taking on more. Banks are tighter then tight now in giving out loans. It is hard to close mortages at this point. They do not like to see alot of debt. Credit score guidelines have also changed. You need a higher score then ever. Bridge loans are very hard to come by. Those are usually only done when a house has a contract on it already. Meaning your main resident is under contract by a buyer and you already have a house in mind that is under contract. Now you are moving from one area that cost alot to an area that does not cost as much as far as housing goes. Please use common sense and do not purchase a house that is too large or too expensive since you and you husband are getting older and your needs are very different now.

Honestly with what you say you house value is in NJ and the equity that you say you have in you NJ and his new income you could practically pay cash for a house in Buffalo area. Please try not to incur more debt.