Profile picture for user019667

How will just buying a house and going into some credit debt affect a buying a new house?

Just bought a house about 6 months ago, but now want to sell and buy a new one bc of high tension wires on our property.  We've gone in to some credit debt and opened a few more credit cards since buying the house.  Will we get pre-approved for a low  amount bc of that? 
  • April 13 2012 - South Lyon
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Answers (4)

Profile picture for Ofe Polack
Were the wires there before....when you bought the property or have they just been installed?  If you have issues with the location, maybe other buyers will too.  Sorry you have hurt your credit, for now.  You may need to clean your credit once again in order to prepare for a sale.  Talk to a lender who can help you correct your credit and also to a Realtor to see if it is feasible to sell the property so quick without going into a short sale mode.
  • April 14 2012
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Profile picture for user287229
Unfortunately this isn't any easy question to answer without more information. I would check with a mortgage professional to see where you stand first of all. If your debt to earning ratio is still good then you need to look at what you can sell your home for. Call your mortgage broker and then call a Realtor to get a market analysis on what your home is worth and if you can afford to sell after all closing costs. Best of luck!
  • April 14 2012
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Best thing you can do is call a lender and see where your at.  higher debt then you had will bring down the house you will be qualified to buy but the lender will be able to let you know what you would qualify for after you sell your house. 
You then need to call a Realtor and see what you might be able to list your home for and if its possible to even sell now.    
Good luck
  • April 14 2012
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Profile picture for Cindy Quinton
Well, high debt to credit limit can affect your credit scores. Also having a low average age of accounts can lower your credit scores.  So it seems likely your credit has taken a hit if you took on a lot of new debt.

Lenders will also be looking at your debt to income ratios, and they may be substancially different than they were when you were approved for your new home.

Can you afford to sell your house? Did you make a large downpayment? Or did you roll a lot of the cost of closing into seller consessions or the loan itself? If you sell, you will have the cost of commissions and other expenses, plus you will have to pay off the mortgage. Then you will need to have the funds to make a downpayment on a new home, and pay all those closing costs again.

That is why most people plan to stay in a house many, many years. Just some things to think about.
  • April 13 2012
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