A bunch of questions about buying a house.

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A bunch of questions about buying a house.

Postby paparoach429 » Sun Jul 19, 2015 2:35 am

So long story short guys, My dad past away 6 months ago and me and my family want to move and get out of this horrible Chicago neighborhood we are in. My mom and I, as well as my uncle and my sister are looking to move to the suburbs. We currently have a 2 story home that me, my mom and my uncle live in and my sister lives a few blocks away. My house now will be paid off in May on 2016 so we plan to start looking now. The mortgage will have to go in my name as my moms and sisters credit is shot, and my uncle only wants to rent. The multi family houses we are looking at are between 300k-350k. We are expecting our current house to sell for roughly 100k and putting all of that as a down payment on the new house.

My questions are:
1. With 28%-33% down payment is it even in the ballpark that I will get the mortgage being 23 with a 760 credit score and 60k annual income?
2. Does the bank take into consideration that the other 2 units of the house will be rented out for additional mortgage payment support?
3. Even with a possible 33% down how bad will this jeopardize me buying another house in a few years with my girlfriend or possible getting a different car?
4. Will the bank see that renting out 2 out of the 3 units will cover 90% of the expected mortgage?
5. Should I get my credit ran now to see what I can get approved for even if we don't buy a house for a few months?
6. Can my current house be sold "as is", if so how can that hurt us? The reason I ask is there may be some zone restrictions concerning the electricity.

That's about all I can think of right now but I'm sure I will think of more questions as the hours go on. Thanks for your guys' input.

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Re: A bunch of questions about buying a house.

Postby MemberSince99 » Sun Jul 19, 2015 6:44 am

Your score is fine and should get you the best rate. They take all 3 and use the median score however, just so you are aware (the one in the middle).

As long as you can afford the payments, and the LTV is there (in other words the house is worth more than what you owe when you buy) you should be fine. They will look at DTI (what you owe vs your income) to determine how affordable it would be for you.

I would be shocked beyond belief if the bank cares what you might rent part of it out for. They will only look at your income if you will be living there as far as I know - what if you aren't able to rent it? Banks don't tend to like "maybe" income.

The only way it will jeopardize buying another house in a few years is you already have this one to pay on. So that might mean that they will feel you have too many obligations already to take on another one. That is a real possibility.

Again the renting game is always a risk. What if your renter loses their job or something like that? Can you then suck it up and pay that mortgage yourself? Because that's what they are going to expect you to do. The mortgage is with you, not with whoever you rent to, and thus you will be expected to make it month in and month out. They don't care that you rented to a slimebag who didn't pay you and had the courtesy to trash it on the way out - they only care did you pay them.

I thought all houses were sold "as is". The buyer has an inspection done, and the inspector should raise any relevant issues. These issues might give the buyer an "out", but otherwise, to my knowledge, it's bought and sold "as is" with few exceptions.

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