Questions for a mortgage loan professional?
We currently own a condo. We paid $ 295K for it in 2005 and its not worth that much now. Its worth right around 200K now.
Our family is growing (baby on the way) and we would love to have a house. We really want a back yard for the kids and easy access to the house (currently we have stairs to our condo which isn’t very convenient when carrying kids).
Our payment is $ 1300+taxes. we can rent our place out for at least $ 1500 per month. The house we would like to buy is $ 250K (we are thinking of offering $ 200K).
How can we pre-qualify? I am thinking our options are following:
Get a signed lease to rent our condo and put that in as income. (we currently make $ 8400/mo and our debts are $ 1300 (current mortgage) + $ 600 (credit cards).
Come up with 20% down (we currently have 10%). What is a requirement now? What is the debt ratio now? Pre-qualify this way and rent our condo.
Or our last option would be to buy a house and foreclose the condo….