I purchased my first home a few months ago and will be moving to another state due to a better job offer. I know that trying to sell my home may not be in my best interest since I just got it, however, if I do – there is no pre-payment penalty on my loan.
My question is: Am I better off selling my house (have about $25k in equity) or renting it out and trying to buy a second home in the new state? Would I be able to buy a second home with having this first one? I have been told that I should be able to as long as I can prove the first one is rented out. Is this correct?
I go back and forth with selling because if the job offer doesnt work out, then I would always have a place to come back to if needed. If this would help in providing your answer – I currently live in Texas and will be moving to Colorado.
I would prefer answers from people who have mortgage/lending/real estate experience.
If you may return, keep it. Hopefully you can pretty much cover your mortgage with what you would charge for rent (and I think you might be able to, Texas still has low pricing, therefore your mortgage should be relatively low). And Texas is a long term state, but property value IS going up.
Before you go, you can also interview and choose the renter yourself, which is nice, instead of relying on a property management company to find you one.
Your loan for your new house (since you will be living there) will obviously be a primary residence loan, so that wold be up to a lender to work out the two. You have already closed escrow on your Texas house as primary, so yes, you would have to produce a rental agreement of some kind and let the underwriters at the bank sort it out. (You definitely have it in your favor that you are telling the truth on all this, most investors, myself included, have had to jump throughhoops and crazyness with double loans in other states and owner occupied clauses, etc.). You will also haveto show proof of work in the state, etc. to close primary on your CO home.
Generally though, the most expensive of the two homes you own willend up being your primary residence (in the bank’s eyes). You need to go over all of this with a loan officer (a smart and talented one who knows what they are talking about).
The $25k in equity may not be as much as you think. Once you sell, minus 6% for brokerage fees and another $2k or so (I’m not familar with TX title fees) for sellers closing costs.
I purchased my first home a few months ago and will be moving to another state due to a better job offer. I know that trying to sell my home may not be in my best interest since I just got it, however, if I do – there is no pre-payment penalty on my loan.
My question is: Am I better off selling my house (have about $25k in equity) or renting it out and trying to buy a second home in the new state? Would I be able to buy a second home with having this first one? I have been told that I should be able to as long as I can prove the first one is rented out. Is this correct?
I go back and forth with selling because if the job offer doesnt work out, then I would always have a place to come back to if needed. If this would help in providing your answer – I currently live in Texas and will be moving to Colorado.
I would prefer answers from people who have mortgage/lending/real estate experience.
If you may return, keep it. Hopefully you can pretty much cover your mortgage with what you would charge for rent (and I think you might be able to, Texas still has low pricing, therefore your mortgage should be relatively low). And Texas is a long term state, but property value IS going up.
Before you go, you can also interview and choose the renter yourself, which is nice, instead of relying on a property management company to find you one.
Your loan for your new house (since you will be living there) will obviously be a primary residence loan, so that wold be up to a lender to work out the two. You have already closed escrow on your Texas house as primary, so yes, you would have to produce a rental agreement of some kind and let the underwriters at the bank sort it out. (You definitely have it in your favor that you are telling the truth on all this, most investors, myself included, have had to jump throughhoops and crazyness with double loans in other states and owner occupied clauses, etc.). You will also haveto show proof of work in the state, etc. to close primary on your CO home.
Generally though, the most expensive of the two homes you own willend up being your primary residence (in the bank’s eyes). You need to go over all of this with a loan officer (a smart and talented one who knows what they are talking about).
The $25k in equity may not be as much as you think. Once you sell, minus 6% for brokerage fees and another $2k or so (I’m not familar with TX title fees) for sellers closing costs.
I am moving apartment by myself and needs to carry heavy boxed downstairs and to my car. As I have very very tiny apartment, I don’t want to hire a professional moving company. Is there any way I can find someone help me move my boxes from home to my car?
college students need cash. ask a councelor.
I am moving apartment by myself and needs to carry heavy boxed downstairs and to my car. As I have very very tiny apartment, I don’t want to hire a professional moving company. Is there any way I can find someone help me move my boxes from home to my car?
college students need cash. ask a councelor.
When a security is analyzed or forecasted by moving averages how do "you" determine which duration of moving average is MOST important for your security? 10 day? 20 day? 50-100 day moving averages?
I like the 50 day moving average.
It’s a matter of personal comfort. A shorter MA will get me in sooner, but will give me more false signals. A longer MA reduces false signals, but makes me miss more of the beginning of the move.
When a security is analyzed or forecasted by moving averages how do "you" determine which duration of moving average is MOST important for your security? 10 day? 20 day? 50-100 day moving averages?
I like the 50 day moving average.
It’s a matter of personal comfort. A shorter MA will get me in sooner, but will give me more false signals. A longer MA reduces false signals, but makes me miss more of the beginning of the move.
What do you say to the assumption that the adds you are running are untruths by omission. Sure you can not be sacked if you don’t want your penalty and overtime rates removed, but the truth of the matter is the employer, after your removal of unfair dismissal laws, can sack workers under any other pretence. Sneaky hay!!! But I am sure you knew that all the time. I know there are laws around the numbers of employees a company has to impact on the law but really it is only the small firms who try this on seemingly with your approval and encouragement.
My second question is will you be crying and blaming the states when the removalist van is taking your stuff out of The Lodge and Kirribilli House. I won’t be, I will be doing cartwheels!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
I see your question as more of a statement from you rather than a question…but..I also think along the samr lines…what the adds do not tell you is that if you do not sign the new workplace agreement that you company does then they can just not employ you. You don’t like what they have to offer and do not want to sign then they can just say that they do not have a position for you. It happened in my old work place. We are all held up for ransom.
I’m 18, female and studying fulltime at University. I’m planning on moving out early next year because my parent’s house is too far from Uni and the commute each day is taking its toll on my life. I’m dead broke right now but am working towards having enough $ for the move by next year. What are some good tips/personal experiences you can share about moving out of home? When looking for a room to rent, what should I keep in mind?
I have no friends, and am so shy that I’m 27 and have never been on a date, but I did fine when I moved out.
I’m pretty sure that any apprehension you may have is unmerited. The main thing is to make sure you never tap into your rent money, but since you’re a female I doubt you have this problem.
I got into tapping into my rent money just so I could be around some girls (not even that attractive), and then I found myself almost unable to make rent!
My husband has inherited his parents old farm house, the basement is old stone and gross, lots of water and mice get in. Do we need to have the house moved off first and tear up the current basement or what?
Why not pour concrete inner walls. If you have access from the outside you should be able to pour a retaining wall type of basement lining. I have seen it done but I don’t know how to do it myself. It can be done from the outside or better yet from the inside.
My boyfriend & I moved from a large city to a smaller one of about 120,000 because he is attending grad school. I like where we live & my job, but miss being in a major city.
With him graduating this Spring, we were originally thinking about moving to a bigger city in the same area. But with the recession, I am wondering if we should try to stay put. Mainly, I’m concerned that the job market is going to be a nightmare & I should try to hold onto the job I have now.
Thanks!
From a financial standpoint
Follow the money. If you have a good job at the moment don’t go anywhere however. If you put out your resume and find a better job elsewhere well move away.
From a Comfort standpoint
Why bother? You have a good job why do you need to move your all settled in.
Good luck