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DTI when trading up houses

I would like to first buy a new house and then (after a month or so to move and clean it up) sell my old house. I think I have the down payment for the new house in order. The only issue I foresee is DTI. My current mortgage broker is telling me its an issue and I'm trying to decide if it will be for everyone or if I should shop around a bit more.
So current expenses are 3740/mo (mortgage + car payment + property tax)
current income is 17400/mo (employers will verify)
plenty  (hundreds of thousands) of reserves (though it's all in ira/401k)

Can someone out there tell me what the highest payment I could sign up for in a new house is. I get the feeling it might vary by lender so any explanation of the variance would be helpful too. Thanks
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September 28 2013 - San Carlos
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You should be able to qualify in the $3500-$3900 range. Of course dependent upon credit, etc. but this payment range would keep you debt ration below 45%

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October 28 2013
georgesdomains

to many variables to tell you what IS max loan .
call me  .


Omar Khamisa
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October 26 2013
It will depend on the program type (conventional, FHA, VA). You should be able to qualify for a new payment of $4,090 on the low end to $5,830 on the high end. I would be happy to take a closer look at this for you. Feel free to contact me through my profile if you wish to discuss further.
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September 28 2013
You haven't mentioned whether you've considered and rejected the idea of renting the old house. Using "departing home" guidelines, you could offset a large part of the debt on the old house, assuming you have 30% or more equity in that property, and buy more on the new home, without having to have had a previous history is an investor with rental property.
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September 28 2013

One Point of View:
Based on up to $625500 high balance conforming loan, with a 20% down payment and good credit scores, 50% could be the top qualifying debt to income ratio (dti).   With debts of $3740/month you are at about 21% dti as is. That leaves about 29%/$5046 residual.  The payment on a $625,500 loan at the going interest rate of 4.625% (conservative) is $3216 .Property taxes will be roughly $650/month. Insurance, $100/month. Total = $3966.
Total Bills with new and old house factored = $7706.  Debt to income ratio - estimate = 44% 
  In this example, for every $1000 the loan amount drops, the payment will go down $5.20.

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September 28 2013
 
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DTI when trading up houses
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