Posted by Ed Garcia on May 02, 1999 at 12:15:29:
Anthony:
Your question is to broad to answer, with out knowing your personal
financial circumstances.
In order for a loan to be assumed, you would have to show qualifications
as you would in getting a new loan. The lender usually charges a one
point assumption fee. This can vary from lender to lender.
Rather then me posting a long answer that may not hit the mark because
of lack of information.
My suggestion to is to find yourself a loan broker to pre-approve you
for a loan on this purchase. When your broker pre-qualifies you, that will
enable you to know where you stand on qualifying in general.
Spend time with this broker, and tell them that you would like to know
what it takes as far as loan to value, as well as debt service.
Ask your broker what programs are available that you would qualify for.
Remember Anthony, you had mentioned that you was going to refinance
the second as well. Now you may not have to do that if your broker can
do it all in one loan.
When you fill out the loan package for the broker, keep a copy for yourself.
You should maintain a loan package on yourself at all times.
This will allow you to shop the loan if you need to.
After doing this you will see yourself differently because the loan broker
educated you as to what it would take for you to qualify for a loan in general.
It should also help you in assuming the loan because, you now can call the
lender who holds the loan that you want to assume, and ask them to send
you out a loan package. When they do, you can fill it out knowing what
they expect.
In working with the loan broker, it will also help you to see if you qualify
for another loan program in the event you don?t qualify for the loan assumption.
Ed Garcia