Obstacle 03 · Qualification
Can I qualify before my home sells?
You may have enough money to buy, yet run into an approval problem when the lender counts housing obligations on both homes. Tony needs to review your actual numbers.
A possible tool: a Guaranteed Backup Contract.
In an applicable program, a contractual backstop for your current-home sale may allow different treatment of that home’s obligation for qualification. It requires lender review; it is not automatic approval.
A few things matter.
- Review both homes’ mortgages, taxes, insurance and association dues, along with other debts.
- The property, backup agreement and mortgage must meet the applicable requirements.
- Even if qualification changes, you still need to plan for actual ownership costs until the sale.