From: "John A. Weeks III" 
Newsgroups: misc.invest.real-estate
Subject: Re: preapproval problem...
Date: Tue, 20 Sep 2005 10:07:42 -0500

In article , "paranoid"  
wrote:

>     We have found a property we like, but we cannot obtain a pre approval 
> letter from the loan officer. He says he doesn't want to sign his name on 
> anything that he cant guarantee. My real estate agent says without this 
> letter, our offer wont be accepted....

That is the same thing as being rejected for the loan on the 2nd
house.  They are telling you that they don't think you can pay
2 mortgages.

>     My middle score is 704, and we are doing a stated income loan (I am 
> self-employed), and will be doing another stated income on the second 
> house....

Credit score means little when it comes to ability to pay.  Stated
income means that you don't qualify for a normal mortgage, and these
kinds or programs are always red flags to smart sellers.  Your seller
doesn't want to take their home off the market unless they are sure
you can get a mortgage.

>     What do we do? We thought about backing out of the current refinance, 
> and then just getting a Heloc, and obtaining the second loan. Problem,. is 
> we don't reduce our interest rate on said property, and it will cost us 
> about $100 a month more, and we are very limited on our budget....Also, 
> since we will be moving, refinancing the original house again at a later 
> date will mean, either we lie about it being a primary residence, or its not 
> worth doing, since it will be considered investment property..

You just identified one of the key downsides of home ownership.
They are not easy or quick to sell.  I think you are going to have
to slow down, put the horses back in the barn, and think this
through like a rational person.  The right sequence is to list
your current home for sale, then sell it.  Once you close, you
then get pre-qualified on your new loan, then find a new house.
Yes, that seems like a lot of work, but that it ensure that
you are not left holding the bag, and it makes you a much more
attractive buyer.

-john-

-- 
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John A. Weeks III           952-432-2708            john@johnweeks.com
Newave Communications                         http://www.johnweeks.com
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