Real Estate? - Keller,TX

when you make a bid on the new house add a contingency clause that says that you have to sell your old house first before you close. if they are desperate, they'll go for it. if it's brand new on the market then they probably won't go for it. sometimes they'll go with a definite maximum time...say 6 mos. don't get stuck paying for 2 houses and a property...this isn't the economy for it. also, check around in your neighborhood to see if houses are being rented to see if this is a viable option and how much they are renting for. good luck...don't be rash...the perfect house will always be out there.

H.,

the real estate market is tough right now. I suggest you wait to sell your homes first. Also it might be very difficult for you to get approved for this 3rd property anyway, you would have to be able to afford all three payments. Even if you rent one the bank will want you to be able to pay all three just in case. good luck.

Everyone else is right - and you can do a contingency. But, consider the new loan...I'm a licensed Mortgage banker and here's the scoop on the underwriting requirements:

If you have 30% net equity (market value - mortgages - realty fees = net equity) in the existing home, you don't have to qualify with both payments as long as it is pending sale (without a contingency clause for the buyer) or has an executed lease. If you don't meet the above, you are required to count all payments in your qualifying ratios, which may mean you don't qualify for the new home.

Don't think for a second that they won't make you document and prove every bit of this: market value of the home, lease, etc. These aren't the days where if you can fog a mirror you get a mortgage!

Message me if you have questions

C.

Lorie's advice is great. Don't be rash...especially in this economy. Get a good mortgage rate too!