Can I Get a Home Loan While Trying to Sell My Current Home?
Finding Some Money
Some home buyers get the down payment for their new house from the proceeds of the sale of their old house. If you're in this situation, buying a new home can be challenging since you won't have access to the funds. One potential solution can be to take out a bridge loan that provides you with down payment money in the short term. Another option is to take out a home equity line of credit against your old home and use it for down payment money.
Qualifying Income Levels
Lenders typically calculate your debt to income ratio when deciding whether or not to approve you for a mortgage. To calculate the ratio, they add up all of your monthly minimum debt payments -- credit cards, cars, student loans, personal loans, and mortgages -- and divide them by your monthly gross income. To buy a house before you sell, your
income will have to support both mortgage payments at the same time. If you're struggling just to have enough income to qualify for the new loan without figuring in your old mortgage, you probably won't be able to qualify with both unless you can find a lender that will allow a higher debt to income ratio.
Selling without Closing
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