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Updated 7 months ago on . Most recent reply

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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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Chris Seveney
  • Investor
  • Virginia
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Chris Seveney
  • Investor
  • Virginia
ModeratorReplied

@Michael Kaminski

If your existing home is on the market the bank could do a traditional bridge loan which is short term and gives you time to sell your home - just want to make sure you have plenty of equity that when it sells it can pay off that loan

What state you in ?

  • Chris Seveney
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7e investments
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