How Do Mortgages Work In This Situation?
If we want to buy a new house, do we approach our current mortgage company and ask for an increase in our loan?? Then do they give you a mortgage promise and we produce that so we know we can realistically put an offer in on another property?
Tags: current mortgage company, increase our loan, mortgage promise, Mortgages, pre approved car loan, Situation, Work
You’ll need to get a different mortgage. Mortgage companies don’t increase a limit like, say, a credit card. You can get “pre-qualified” for a loan but “pre-approved” is better. Once you’ve given the info to your mortgage company, and they’re okay with it, they can give you a letter that shows how much you’re pre-approved for.
You can shop around for a new mortgage anywhere, including at your current mortgage holder. However, if you want to buy a different house while still owning your current house, you will need to financially qualify to handle BOTH mortgage payments. This is NOT easy.
I recommend putting in an offer on your next house contingent upon the successful sale and closing of your current house. These types of offers are very common, but do be aware that such offers allow the seller to sell to another party who does not have such a contingency.
Call your mortgage company and tell them your situation,
You can probably either do a Blanket Loan, (having 2 properties but 1 mortgage to cover both), but this type is more risky
or apply for a New mortgage…you’ll get a pre-approval letter.
Anways, you should hire a Real Estate Attorney, and they can give your better advise, they will know more about your financail situation then us.
Good Luck!
http://www.needingadvice.co.uk/remortgag…
You would get pre-qulified for a NEW loan for the amount you are looking for. That would be contingent on you selling your current property. There are loans called Bridge loans which are available on a short term basis when you are carrying multiple loans but would be risky in this market. Good Luck!