Sell before purchasing a new property?
My family and I are renting in Naperville IL. We plan to buy a new home here but we’re not sure if we qualify. Our budget is for a 450k to 500k home and we can put down at least 10%. Credit scores from the big 3 are 729, 715, and 735. Our income is 150k. We also have a townhouse that we have been renting out since selling it would be a big loss for us due to market conditions. We bought the townhouse at $400k and current market rates are at $300k for similar townhouses. Should we sell the rental before purchasing the new property? Thanks for the insights. by rsmartin657 from San Diego, California. Dec 31st 2021
Bert Carpenter (BertCarpenter)
#38 ranked lender in Arizona - 2,431 contributions
The answer to your 'should I sell first' question is more complex than a 'Yes' or a 'No'. I am licensed in IL and CA. I'd be happy to go over your details and help you determine if you can buy without selling or if you have other options. Give me a call and let's get see what your options.Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Certified Mortgage Advisor and Certified by The National Association of Mortgage Professionals as a Certified Veterans Lending Specialist.Licensed in AZ, CA, GA, IL, MO, OR & WA... In fact, NEXA is licensed in all states except MA and NY so give us a call. ~ www.ApplyYes.com 480-889-9000 - OR - 480-695-9300
Barb Lanis (BarbLanis)
#69 ranked lender in Illinois - 679 contributions
If you've been renting out the townhouse for 1 or more years and filed taxes using Schedule E, generally a lender should be able to use the rental income to offset any mortgage payment, taxes and insurance on the property.
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