Reply to How to buy a house without a contingency of selling our current home

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]OP here. Only just found the thread again as out was erroneously moved to real estate. It's a money question and I'm asking for it to be moved back.

I'll look into this. I thought 401k loans were limited to a small amount, like 50k. We'll need to find a way to borrow soothing like $800k, at least temporarily, then have a mortgage of about $150k.

To the PP who suggested the contingency, you missed the point. To buy in our target neighborhood, routinely all contingencies are waived. [/quote]

Why do you need 800K? You only need enough for the down payment (I am assuming 20% or so), and you would get a mortgage for the rest, right? I don't see why you would not get approved for a 660-700k mortgage, considering you have that much equity in your curent home. 800K in your 401k would certainly be enough to borrow sufficient funds for your down payment.[/quote]

No, before selling our current home we'd need to come up with the full purchase price. Once we've sold our current home we'd plan to have a mortgage in the $100-200k range. We can't afford monthly payments on a 660-700k mortgage and signing up for a 30 year mortgage for that amount (even if we can qualify for it, which I assume we can't due to our salaries not supporting the repayments) for a few months while we sell our home does not make any sense.[/quote]

You do know that you don't pay your mortgage for the first month after closing, right? That is usually rolled into the closing costs. So you're saying that you can't find 6 or 7K (however much the monthly payment would be on your 700K mortgage?) If you are fairly confident that your home will sell, you may only need to make one or at most two mortgage payment at that rate before paying off the rest from the proceeds of selling your current home. Your current mortgage payment sounds like it's minimal. [/quote]

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