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Updated 5 months ago, 08/05/2024

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Closing on new primary home before current home sells how to avoid dti issues

Michael Kaminski
Posted

Currently looking at closing on a new home in november/december and do not anticipate selling ours for a month or two after we move. Playing with some DTI calculators I'll be hovering around 50%. My plan was to recast or refi a few months after we close on our current home. With all that said will the DTI still be a large issue if I have almost a $500k in equity in the current home , a couple hundred thlusand in ira/401k , and around $300k crypto that could become liquid? I realize I could cash in on any of the above and decrease the new mortgage in turn lowering my dti but my intention is to not face any tax losses by selling from any of those accounts before the end of year. Any reason to anticipate I may not get an approval still because of my dti?

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