Can I apply for 2 mortgages at the same time?

Question

I have one commercial loan that I am refinancing and just go pre approved by Quicken loans for home mortgage.  I got qualified for 195k for an fha, 3.5 percent first time home buyer.

The commercial refi is more important to me, but i would like to purchase a home for my family instead of renting.  Should I wait until I am done with the refi, or can I do it at the same time.

Thanks in advance guys

P.J. Bremner · Answer

Account Closed

When you apply for a loan, your file goes into underwriting to make sure everything you submitted in your application is accurate.  As you are probably aware they check income, reserve money in the bank, credit report, etc. and will make sure all of your ratios are in line.  If you are applying for 2 loans at the same time, the loans will each show up in the underwriting of the other loan.  This means that you will have to qualify for BOTH at the same time.  What are you trying to accomplish with the commercial refi?  The reason I ask is because sometimes the refi will actually HELP you qualify for the second.  For example: you refi the current loan of $100,000 @ 5% over to the new loan for $100,000 @ 4%.  Your payment goes down, lowering your outgoing expenses which increases your purchasing power for the new owner occupied loan.  On the flip side, if you are taking out equity, and your loan payment goes up, then your purchasing power will go down for the new purchase loan.  Hope this helps!

Account Closed · Answer

It didnt work. I got denied on both sides.

Wayne Brooks · Answer

Doesn't matter, you have to qualify for both of them anyway.