Profile picture for rotten1

how to know if you have enough equity in your home to use for a down pymt on another home?

  • June 15 2010 - Hillsboro
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Answers (3)

Talk to a broker first to figure out what sales price your home might sell at. That person can also give you a "Seller Net Sheet" which will show you what's left over after all closing expenses are paid. That amount is the equity you have to use for your next purchase. I'd then talk to a lender to see what you would qualify for based on that amount and your credit history. The lender will give you a GFE (Good Faith Estimate) to show you how much cash you'll need to acquire the mortgage. After getting all the facts you can then make an informed decision on what to do. Usually the whole process can be done within a week or less. Good luck!
  • June 16 2010
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A Realtor can do what is called a CMA on your home to determine the value (estimate) you would then subtract what you owe to determine equity.  Your question leads to other questions like what do you plan to do with the current home? Are you using the equity to buy an investment home? How are you planning to pull the equity out of the current home?...etc.  I would encourage you to talk with both a Realtor and a lender to iron out the details.
  • June 15 2010
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Profile picture for Ofe Polack
It may not be a bad idea for you to talk to a lender, we do not know the value of your home, how much you owe on it, nor the price of the new home and your credit history.  As you can see I cannot give you a straight answer.  Have a word with your lender.  The best of luck!
  • June 15 2010
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